15,700 barrels o oll for purchase in June for $75 per barrel. Direct labor budge

Question

15,700 barrels o oll for purchase in June for $75 per barrel. Direct labor budgeted in the chemical process was $141,300 for June. Factory overhead was budgeted at $212,000 during June. The inventories on June 1 were Cost of Goods Sold Budget Delaware Chemical Company uses oll to produce two types of plastic products, PI and P2. Delaware budgeted estimated to be: Oil P1 P2 Work in prooess 8,200 The desired inventories on June 30 were: Oil P1 P2 Work in process 8,500 $9,900 6,600 5,700 $10,900 6,100 5,400 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 une Direct materials 3/27/2018, 8:40 PM f2

Explanation / Answer

COST OF GOODS SOLD BUDGET Beginning Inventory of Finished Goods (6600+5700) 12300 Beginning Inventory of WIP 8200 Direct material: Beginning Inventory of RM 9900 Add: Purchasses 1177500 Total Goods available 1187400 Less: Ending Inventory of RM 10900 Direct material cost 1,176,500 Direct Labour cost 141300 Factory Overheads 212000 Total Manufacturing cost 1529800 Total Cost of Goods manufactured 1,538,000 Less: Ending Inventory of WIP 8500 Cost of Goods manufactured 1,529,500 Total cost of Goods available f or sale 1541800 Less: Ending Inventory of Finished Goods 11,500 Cost of Goods sold 1,530,300

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