Cost of Goods Sold Budget

Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 29,600 barrels of oil for purchase in June for $61 per barrel. Direct labor budgeted in the chemical process was $234,700 for June. Factory overhead was budgeted at $325,000 during June. The inventories on June 1 were estimated to be:

Oil	$16,400
P1	11,000
P2	9,400
Work in process	13,600

The desired inventories on June 30 were:

Oil	$18,100
P1	10,100
P2	8,900
Work in process	14,100

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.

Delaware Chemical Company
Cost of Goods Sold Budget
For the Month Ending June 30
Finished goods inventory, June 1			$fill in the blank 2
Work in process inventory, June 1		$fill in the blank 4
Direct materials:
Direct materials inventory, June 1	$fill in the blank 6
Direct materials purchases	fill in the blank 8
Cost of direct materials available for use	$fill in the blank 10
Direct materials inventory, June 30	fill in the blank 12
Cost of direct materials placed in production	$fill in the blank 14
Direct labor	fill in the blank 16
Factory overhead	fill in the blank 18
Total manufacturing costs		fill in the blank 20
Total work in process during the period		$fill in the blank 22
Work in process inventory, June 30		fill in the blank 24
Cost of goods manufactured			fill in the blank 26
Cost of finished goods available for sale			$fill in the blank 28
Finished goods inventory, June 30			$fill in the blank 30
Cost of goods sold			$fill in the blank 32