Cost of Goods Sold Budget Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 15,500 barrels of oil for purchase in June for $58 per barrel. Direct labor budgeted in the chemical process was $116,900 for June. Factory overhead was budgeted at $161,800 during June. The inventories on June 1 were estimated to be: Oil P1 P2 Work in process $8,200 5,500 4,700 6,800 The desired inventories on June 30 were: Oil $9,000 P1 5,000 P2 4,400 Work in process 7,000