Delaware Chemical Company uses oil to produce two types of plastic products, P$1$ and P$2.$ Delaware budgeted $20,800$ barrels of oil for purchase in June for $$59$ per barrel. Direct labor budgeted in the chemical process was $$135,000$ for June. Factory overhead was budgeted at $$220,900$ during June. The inventories on June $1$ were estimated to be:

Line Item Description Amount

Oil $$9,500$

P$16,300$

P$25,400$

Work in process $7,800$

The desired inventories on June $30$ were:

Line Item Description Amount

Oil $$10,400$

P$15,800$

P$25,100$

Work in process $8,100$

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 $30$

Line Item Description Amount Amount Amount

Finished goods inventory, June $1$

$Finished goods inventory, June $1$

$11,700$

Work in process inventory, June $1$

$Work in process inventory, June $1$

$7,800$

Direct materials:

Direct materials inventory, June $1$

$Direct materials inventory, June $1$

$9,500$

Direct materials purchases

Direct materials purchases

$1,227,200$

Cost of direct materials available for use

$Cost of direct materials available for use

Direct materials inventory, June $30$

Direct materials inventory, June $30$

Cost of direct materials placed in production

$Cost of direct materials placed in production

Direct labor

Direct labor

Factory overhead

Factory overhead

Total manufacturing costs

Total manufacturing costs

Total work in process during the period

$Total work in process during the period

Work in process inventory, June $30$

Work in process inventory, June $30$

Cost of goods manufactured

Cost of goods manufactured

Cost of finished goods available for sale

$Cost of finished goods available for sale

Finished goods inventory, June $30$

$Finished goods inventory, June $30$

Cost of goods sold

$Cost of goods sold