Question

Cost of Goods Sold Budget

Wilmington Chemical Company uses oil to produce two types of plastic products, P1 and P2. Wilmington budgeted 31,900 barrels of oil for purchase in June for $63 per barrel. Direct labor budgeted in the chemical process was $221,100 for June. Factory overhead was budgeted $361,700 during June. The inventories on June 1 were estimated to be:

Oil	$15,500
P1	10,400
P2	8,800
Work in process	12,800

The desired inventories on June 30 were:

Oil	$17,000
P1	9,500
P2	8,400
Work in process	13,300

Use the preceding information to prepare a cost of goods sold budget for June.

Wilmington Chemical Company
Cost of Goods Sold Budget
For the Month Ending June 30
			$fill in the blank 2
		$fill in the blank 4
Direct materials:
	$fill in the blank 6
	fill in the blank 8
	$fill in the blank 10
	fill in the blank 12
	$fill in the blank 14
	fill in the blank 16
	fill in the blank 18
		fill in the blank 20
		$fill in the blank 22
		fill in the blank 24
			fill in the blank 26
Cost of finished goods available for sale			$fill in the blank 28
Less finished goods inventory, June 30			fill in the blank 30
Cost of goods sold			$fill in the blank 32

Answer 1

Wilmington Chemical Company
Cost of Goods Sold Budget
For the Month Ending June 30
Finished goods inventory, June 1			19200	=10400+8800
Work in process inventory, June 1		12800
Direct materials:
Direct materials inventory, June 1	15500
Direct materials purchases	2009700			=31900*63
Cost of direct materials available for use	2025200
Less: Direct materials inventory, June 30	17000
Cost of direct materials placed in production	2008200
Direct labor	221100
Factory Overhead	361700
Total manufacturing costs		2591000
Total work in process during the period		2603800
Less: Work in process inventory, June 30		13300
Cost of goods manufactured			2590500
Cost of finished goods available for sale			2609700
Less: Finished goods inventory, June 30			17900	=9500+8400
Cost of goods sold			2591800