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Cost of Goods Sold Budget

Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 20,000 barrels of oil for purchase in June for $73 per barrel. Direct labor budgeted in the chemical process was $160,600 for June. Factory overhead was budgeted at $262,800 during June. The inventories on June 1 were estimated to be:

Oil	$11,200
P1	7,500
P2	6,400
Work in process	9,300

The desired inventories on June 30 were:

Oil	$12,400
P1	6,900
P2	6,100
Work in process	9,600

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			$Finished goods inventory, June 1
Work in process inventory, June 1		$Work in process inventory, June 1
Direct materials:
Direct materials inventory, June 1	$Direct materials inventory, June 1
Direct materials purchases	Direct materials purchases
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