Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 24,400 barrels of oil for purchase in June for $71 per barrel. Direct labor budgeted in the chemical process was $225,200 for June. Factory overhead was budgeted at $311,800 during June. The inventories on June 1 were estimated to be: Oil P1 $15,800 10,600 P2 9,000 Work in process 13,100 The desired inventories on June 30 were: Oil P1 P2 Work in process 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. $17,300 9,700 8,600 13,500 ✓ Line Item Description 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 ✓ Delaware Chemical Company Cost of Goods Sold Budget For the Month Ending June 30 Amount ✓ ✓ ✓ ✓ ✓ Amount Amount
Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 24,400 barrels of oil for purchase in June for $71 per barrel. Direct labor budgeted in the chemical process was $225,200 for June. Factory overhead was budgeted at $311,800 during June. The inventories on June 1 were estimated to be: Oil P1 $15,800 10,600 P2 9,000 Work in process 13,100 The desired inventories on June 30 were: Oil P1 P2 Work in process 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. $17,300 9,700 8,600 13,500 ✓ Line Item Description 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 ✓ Delaware Chemical Company Cost of Goods Sold Budget For the Month Ending June 30 Amount ✓ ✓ ✓ ✓ ✓ Amount Amount
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 24,400 barrels of oil for
purchase in June for $71 per barrel. Direct labor budgeted in the chemical process was $225,200 for June. Factory overhead was budgeted
at $311,800 during June. The inventories on June 1 were estimated to be:
Oil
P1
$15,800
10,600
P2
9,000
Work in process
13,100
The desired inventories on June 30 were:
Oil
P1
P2
Work in process
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.
$17,300
9,700
8,600
13,500
✓
Line Item Description
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
✓
Delaware Chemical Company
Cost of Goods Sold Budget
For the Month Ending June 30
Amount
✓
✓
✓
✓
✓
Amount Amount
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