Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 35,000 barrels of oil for purchase in June for $90 per barrel. Direct labor budgeted in the chemical process was $240,000 for June. Factory overhead was budgeted at $400,000 during June. The inventories on June 1 were estimated to be: Oil $15,200 P1 8,300 P2 8,600 Work in process 12,900 The desired inventories on June 30 were: Oil $16,100 P1 9,400 P2 7,900 Work in process 13,500 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.

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Business

Keith Estrada

3 July, 15:01

Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 35,000 barrels of oil for purchase in June for $90 per barrel. Direct labor budgeted in the chemical process was $240,000 for June. Factory overhead was budgeted at $400,000 during June. The inventories on June 1 were estimated to be: Oil $15,200 P1 8,300 P2 8,600 Work in process 12,900 The desired inventories on June 30 were: Oil $16,100 P1 9,400 P2 7,900 Work in process 13,500 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.

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Kenley Zimmerman · Answer 1

Befinning inventory 45,000

Add: Direct Materials 3,150,000

Labor 240,000

Overhead 400,000

Avaialble for sale 3,835,000

Less: Ending Inventory 46,900

Cost Of Goods Sold 3,788,100