Question

Cost of Goods Sold Budget Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 18,300 barrels of oil for purchase in June for $75 per barrel. Direct labor budgeted in the chemical process was $164,700 for June. Factory overhead was budgeted at $247,100 during June. The inventories on June were estimated to be:
Oil $11,500

P1 7,700

P2 6,600

Work in process 9,600

The desired inventories on June 30 were:

Oil $12,700

P1 7,100

P2 6,300

Work in process 9,900

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

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Direct materials:
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Answer 1

Answer:

Cost of Goods Manufactured = $1,797,100

Explanation:

Cost of Goods Sold Budget

for the Month Ending June 30

Particulars                                                    Amount ($)     Amount ($)      

Finished Goods Inventory                            $14,300

Work in process inventory                            $9,600         $23,900

Direct Materials:

Direct materials inventory                            $11,500

Direct materials purchases                          $1,372,500

Less: Direct material inventory June 30     $(12,700)

Cost of Direct materials in use:                                        $1,371,300

Direct labor                                                                        $164,700

Factory Overhead                                                             $247,100

Total Manufacturing Cost                                                $1,807,000

Total work in process during period          

less: work in process inventory June 30   $(9,900)

Cost of goods manufactured                                           $1,797,100

Answer 2

Answer:

The cost of goods sold for June were $  $1,783,700  

Explanation:

Please see attached image from Excel worksheet.