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Cost of Goods Sold Budget

Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted14,200 barrels of oil for purchase in June for $68 per barrel. Direct labor budgeted in the chemical process was $115,900 for June. Factory overhead was budgeted at $173,800 during June. The inventories on June 1 were estimated to be:

Oil	$8,100
P1	5,400
P2	4,600
Work in process	6,700

The desired inventories on June 30 were:

Oil	$8,900
P1	5,000
P2	4,400
Work in process	7,000

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		$
Direct materials:
Direct materials inventory, June 1	$
Direct materials purchases
Cost of direct materials available for use	$
Direct materials inventory, June 30
Cost of direct materials placed in production	$
Direct labor
Factory overhead
Total manufacturing costs
Total work in process during the period		$
Work in process inventory, June 30
Cost of goods manufactured
Cost of finished goods available for sale			$
Finished goods inventory, June 30			$
Cost of goods sold			$

Answer 1

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