Dover Chemical Company uses oil to produce two types of plastic products, P1 and P2. Dover budgeted
Question:
Dover Chemical Company uses oil to produce two types of plastic products, P1 and P2. Dover budgeted 30,000 barrels of oil for purchase in April for $78 per barrel. Direct labor budgeted in the chemical process was $240,000 for April. Factory overhead was budgeted $375,000 during April. The inventories on April 1 were estimated to be:
Oil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,800
P1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,800
P2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,900
Work in process . . . . . . . . . . . . . . . . . . . . . . . 12,100
The desired inventories on April 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 April 2013.
Step by Step Answer:
1 2 DOVER CHEMICAL COMPANY Cost of Goods Sold Budget For the Month Ending April 30 2013 4 Finished goods inventory April 1 5 Work in process inventory April 1 6 Direct materials 7 Direct materials inventory April 1 Direct materials purchases 8 9 Cost of direct materials available for use 10 11 12 Direct labor 13 Factory overhead Less direct materials inventory April 30 Cost of direct materials placed in production 14 Total manufacturing costs 15 Total work in process during the period 16 Less work in process inventory April 30 17 Cost of goods manufactured 18 Cost of finished goods available for sale 19 Less finished goods inventory April 30 20 ...View the full answer
