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Question - Cost of Goods Sold Budget - Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 20,400 barrels of oil for purchase in June for $59 per barrel. Direct labor budgeted in the chemical process was $144,400 for June. Factory overhead was budgeted at $216,600 during June. The inventories on June 1 were estimated to be:
Oil $10,100
P1 6,800
P2 5,800
Work in process 8,400
The desired inventories on June 30 were:
Oil $11,100
P1 6,200
P2 5,500
Work in process 8,700
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.
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