Question

Universal Chemical Company uses oil to produce two types of plastic products, P1 and P2. Universal budted 28,900 barrels of oil for purchase in April for $64 per barrel. Direct labor budgeted in the chemical process was $240,400 for April. Factory overhead was budgeted $332,900 during April. The inventories on April 1 were estimated to be: Oil P1 P2 Work in process The desired inventories on April 30 were: Oil P1 P2 Work in process $16,800 11,300 9,600 13,900 $18,500 10,300 9,100 14,400

Answer 1

Universal Chemical Company Cost of Goods Sold Budget For the Month Ending April 30, 2017 Finished goods inventory, April 1, 2017 Work in process inventory, April 1, 2017 Direct materials Direct materials inventory, April 1, 2017 Direct materials purchases Cost of direct materials available for use Less direct materials inventory, April 30, 2017 Cost of direct materials placed in production Direct labor Factory overhead Total manufacturing costs Total work in process during the period Less work in process inventory, April 30, 2017 Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, April 30, 2017 Cost of goods sold 20900 13900 16800 1849600 1866400 18500 1847900 240400 332900 2421200 2421200 2435100 14400 2420700 2420700 2441600 19400 2422200