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Wilmington Chemical Company uses oil to produce two types of plastic products, P1 and P2. Wilmington budgeted 20,700 barrels of oil for purchase in June for $64 per barrel. Direct labor budgeted in the chemical process was $145,700 for June. Factory overhead was budgeted $238,500 during June. The inventories on June 1 wen estimated to be: Oil $10,200 P1 6,800 P2 5,800 Work in process 8,500 The desired inventories on June 30 were: Oil P1 P2 Work in process $11,200 6,300 5,500 8,700 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 Finished goods inventory, June 1. Work in process inventory, June 1 $8.500 12,600

Wilmington Chemical Company uses oil to produce two types of plastic products, P1 and P2. Wilmington budgeted 20,700 barrels of oil for purchase in June for $64 per barrel. Direct labor budgeted in the chemical process was $145,700 for June. Factory overhead was budgeted $238,500 during June. The inventories on June 1 wen estimated to be: Oil $10,200 P1 6,800 P2 5,800 Work in process 8,500 The desired inventories on June 30 were: Oil P1 P2 Work in process $11,200 6,300 5,500 8,700 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 Finished goods inventory, June 1. Work in process inventory, June 1 $8.500 12,600

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cost of Goods Sold Budget Wilmington Chemical Company uses oil to produce two types of plastic products, P1 and P2. Wilmington budgeted 20,700 barrels of oil for purchase in June for $64 per barrel. Direct labor budgeted in the chemical process was $145,700 for June. Factory overhead was budgeted $238,500 during June. The inventories on June 1 were estimated to be: Oil $10,200 6,800 5,800 Work in process 8,500 The desired inventories on June 30 were: $11,200 6,300 5,500 8,700 P1 P2 Oil P1 P2 Work in process 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 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 Less 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 Less work in process inventory, June 30 Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, June 30 Cost of goods sold $ 10,200 5,500 $ 15,700 -11,200 4,500 2,277 3,727 8,500 10,504 12,600
Transcribed Image Text:Cost of Goods Sold Budget Wilmington Chemical Company uses oil to produce two types of plastic products, P1 and P2. Wilmington budgeted 20,700 barrels of oil for purchase in June for $64 per barrel. Direct labor budgeted in the chemical process was $145,700 for June. Factory overhead was budgeted $238,500 during June. The inventories on June 1 were estimated to be: Oil $10,200 6,800 5,800 Work in process 8,500 The desired inventories on June 30 were: $11,200 6,300 5,500 8,700 P1 P2 Oil P1 P2 Work in process 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 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 Less 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 Less work in process inventory, June 30 Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, June 30 Cost of goods sold $ 10,200 5,500 $ 15,700 -11,200 4,500 2,277 3,727 8,500 10,504 12,600
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