Cost of Goods Sold Budget Delaware Chemical Company uses oil to produce two type
ID: 2509002 • Letter: C
Question
Cost of Goods Sold Budget Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 14,800 barrels of oil for purchase in June for $61 per barrel. Direct labor budgeted in the chemical process was $117,400 for June. Factory overhead was budgeted at 162,500 during June. The inventories on June 1 were estimated to be: Oil P1 P2 Work in process The desired inventories on June 30 were: Oil P1 P2 Work in process $8,200 5,500 4,700 6,800 $9,000 5,000 4,500 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 Direct materials:Explanation / Answer
D.C Company Cost of Goods sold Budget Finished goods inventory , june 1,2017 (5500+4700) 10200 Work in progress inventory june 1,2017 6800 Direct Materials Direct Materials 8200 Direct materials purchased (14800*61) 902800 Cost of direct material available for uses 911000 Less: Direct Material Inventory -9000 Cost of direct materials placed in production 902000 Direct labor 117400 Factory overheads 162500 Total manufacturing costs 1181900 Total work in progress during period 1188700 less: work in progress inventory -7000 Cost of goods manufactured 1181700 Cost of finished goods available for sale 1191900 less: finished goods inventory, june 30,2017 (5000+4500) -9500 Cost of Goods sold 1182400