Cost of goods sold budget OBJ. 4 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 $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 2017.