Question

Cost of Goods Sold Budget Delaware Chemical Company uses oll to produce two types of plastic products, Pl and P2. Delaware budgeted 21,000 barrels of oil for purchase in June for $62 per barrel. Direct labor budgeted in the chemical process was $169,300 for June. Factory overhead was budgeted at $234,400 during June. The inventories on June 1 were estimated to be: $11,900 NOWN 8,000 6,800 Work in process 9,800 The desired inventories on June 30 were: $13,000 7,300 6,400 10,200 P2 Work in process Use the preceding information to prepare a cost of goods sold budget for June. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Delaware Chemical Company Cost of Goods Sold Budget For the Month Ending June 30 Finished goods inventory, June 1 Work in process Inventory, June 1

Answer 1

Solution

Delaware Chemical Company
Cost of Goods Sold Budget
For the Month Ending June 30
Finished goods inventory, June 1			$ 14,800
Work in process inventory, June 1		$ 9,800
Direct materials:
Direct materials inventory, June 1	$ 11,900
Direct materials purchases	$ 1,302,000
Cost of direct materials available for use	$ 1,313,900
Direct materials inventory, June 30	$ 13,000
Cost of direct materials placed in production	$ 1,300,900
Direct labor	$ 169,300
Factory overhead	$ 234,400
Total manufacturing costs		$ 1,704,600
Total work in process during the period		$ 1,714,400
Work in process inventory, June 30		$ 10,200
Cost of goods manufactured			$ 1,704,200
Cost of finished goods available for sale			$ 1,719,000
Finished goods inventory, June 30			$ 13,700
Cost of goods sold			$ 1,705,300