Question

Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 17,100 barrels of oil for purchase in June for $62 per barrel. Direct labor budgeted in the chemical process was $127,200 for June. Factory overhead was budgeted at $190,800 during June. The inventories on June 1 were estimated to be:

Oil	$8,900
P1	6,000
P2	5,100
Work in process	7,400

The desired inventories on June 30 were:

Oil	$9,800
P1	5,500
P2	4,800
Work in process	7,600

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

Delaware Chemical Company
Cost of Goods Sold Budget
For the month Ending June 30
Finished Goods Inventory , June 1 (6000+5100)			$11,100.00
Work In Progress Inventory June 1,		$7,400.00
Direct Materials Used
Direct Materials Inventory June 01	$8,900.00
Direct Materials Purchases (17100*62)	$1,060,200.00
Cost Of Direct Material Available For Uses	$1,069,100.00
Direct Material Inventory, June 30	-$9,800.00
Cost Of Direct Materials Placed In Production	$1,059,300.00
Direct Labor	$127,200.00
Factory Overheads	$190,800.00
Total Manufacturing Costs		$1,377,300.00
Total Work In Progress During Period		$1,384,700.00
Work In Progress Inventory, June 30		-$7,600.00
Cost Of Goods Manufactured			$1,377,100.00
Cost Of Finished Goods Available For Sale			$1,388,200.00
Finished Goods Inventory, June 30 (5500+4800)			-$10,300.00
Cost Of Goods Sold			$1,377,900.00