Direct Labor Cost Budget

Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows:

	Junior	Pro Striker
Production budget	7,100 units	20,200 units

Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:

	Forming Department	Assembly Department
Junior	0.20 hour per unit	0.40 hour per unit
Pro Striker	0.35 hour per unit	0.60 hour per unit

The direct labor rate for each department is as follows:

Forming Department	$17.00 per hour
Assembly Department	$12.00 per hour

Prepare the direct labor cost budget for July.

	Forming Department	Assembly Department
Hours required for production:
Junior	fill in the blank 1	fill in the blank 2
Pro Striker	fill in the blank 3	fill in the blank 4
Total	fill in the blank 5	fill in the blank 6
Hourly rate	x$fill in the blank 7	x$fill in the blank 8
Total direct labor cost	$fill in the blank 9	$fill in the blank 10

Cost of Goods Sold Budget

Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 19,100 barrels of oil for purchase in June for $60 per barrel. Direct labor budgeted in the chemical process was $137,500 for June. Factory overhead was budgeted at $206,300 during June. The inventories on June 1 were estimated to be:

Oil	$9,600
P1	6,500
P2	5,500
Work in process	8,000

The desired inventories on June 30 were:

Oil	$10,600
P1	5,900
P2	5,200
Work in process	8,300

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.

Cost of direct materials available for useDirect laborFactory overheadFinished goods inventory, June 1Total work in process during period			$- Select -
Direct laborFactory overheadWork in process inventory, June 1Work in process inventory, June 30Total work in process during period		$- Select -
Direct materials:
Cost of direct materials available for useDirect laborDirect materials inventory, June 1Direct materials inventory, June 30Total work in process during period	$- Select -
Cost of goods soldDirect laborDirect materials purchasesFinished goods inventory, June 30Total work in process during period	- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal manufacturing costs	$- Select -
Direct laborDirect materials inventory, June 30Factory overheadFinished goods inventory, June 1Total work in process during period	- Select -
Cost of direct materials placed in productionCost of goods soldFinished goods inventory, June 1Finished goods inventory, June 30Work in process inventory, June 30	$- Select -
Cost of goods soldDirect laborTotal work in process during periodWork in process inventory, June 1Work in process inventory, June 30	- Select -
Direct materials inventory, June 1Direct materials inventory, June 30Factory overheadTotal work in process during periodWork in process inventory, June 30	- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal manufacturing costs		- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal work in process during the period		$- Select -
Direct laborDirect materials inventory, June 30Factory overheadFinished goods inventory, June 1Work in process inventory, June 30		- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal work in process during the period			- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal work in process during the period			$- Select -
Direct laborDirect materials inventory, June 30Factory overheadFinished goods inventory, June 30Work in process inventory, June 30			$- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal work in process during the period			$- Select -