Question

Delaware budgeted 35,000 barrels of oil for purchase in June for $90 per barrel. Direct labor budgeted in the chemical process was $240,000 for June. Factory overhead was budgeted at $400,000 during June. The inventories on June 1 were estimated to be:
Oil $15,200
P1 8,300
P2 8,600
Work in process 12,900

The desired inventories on June 30 were:
Oil $16,100
P1 9,400
P2 7,900
Work in process 13,500

Use the preceding information to prepare a cost of goods sold budget for June.

Answer 1

Answer:

See

Explanation:

Delaware chemical company

Cost of goods sold budget

Direct materials opening inventory

$15,200

Add: purchases (35,000 barrels × $90 per barrels)

$3,150,000

Less. Direct materials closing inventory

$16,100

Direct materials used $3,149,000

Direct labor $240,000

Factory overhead $400,000

Total manufacturing costs $3,789,100

Add: opening work in process $12,900

Cost of goods available for manufacture $3,802,000