Question

Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 30,500 barrels of oil for purchase in June for $75 per barrel. Direct labor budgeted in the chemical process was $274,500 for June. Factory overhead was budgeted at $411,800 during June. The inventories on June 1 were estimated to be:

Oil $19,200
P1 12,900
P2 11,000
Work in process 15,900
The desired inventories on June 30 were:

Oil $21,100
P1 11,800
P2 10,400
Work in process 16,500

Required:
Use the preceding information to prepare a cost of goods sold budget for June.

Answer 1

See below

Step-by-step explanation:

Preparation of cost of goods sold budget for June

Finished goods inventory June 1

Working in process Inventory June 1

Direct materials

Direct materials inventory, June 1

Direct material purchases

Cost of direct materials available for sale