Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 15,800 barrels of oil for purchase in June for $60 per barrel. Direct labor budgeted in the chemical process was $113,800 for June. Factory overhead was budgeted at $170,600 during June. The inventories on June 1 were estimated to be: Oil $8,000 P1 5,300 P2 4,600 Work in process 6,600 The desired inventories on June 30 were: Oil $8,800 P1 4,900 P2 4,300 Work in process 6,800 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.

For the Month Ending June 30 Finished goods inventory, June 1 $ 9,900 Work in process inventory, June 1 $ 6,600 Direct materials: Direct materials inventory, June 1 8,000 Direct materials purchases 948,000 Cost of direct materials available for use 956,000 Direct materials inventory, June 30 8,800 X Cost of direct materials placed in production $ 964,800 Direct labor 113,800 170,600 Factory overhead Total manufacturing costs 1,249,200 x Total work in process during the period Work in process inventory, June 30 Total work in process during the period x Cost of finished goods available for sale Finished goods inventory, June 30 Cost of goods sold Activa