Cost of Goods Sold Budget
Wilmington Chemical Company uses oil to produce two types ofplastic products, P1 and P2. Wilmington budgeted 26,000 barrels ofoil for purchase in June for $67 per barrel. Direct labor budgetedin the chemical process was $209,000 for June. Factory overhead wasbudgeted $313,600 during June. The inventories on June 1 wereestimated to be:
| Oil | $14,600 |
| P1 | 9,800 |
| P2 | 8,400 |
| Work in process | 12,100 |
The desired inventories on June 30 were:
| Oil | $16,100 |
| P1 | 9,000 |
| P2 | 7,900 |
| Work in process | 12,500 |
Use the preceding information to prepare a cost of goods soldbudget for June.
| Wilmington Chemical Company |
| Cost of Goods Sold Budget |
| For the Month Ending June 30 |
| Finished goods inventory, June 1 | | | $ |
| Work in process inventory, June 1 | | $ | |
| Direct materials: | | | |
| Direct materials inventory, June 1 | $ | | |
| Direct materials purchases | | | |
| Cost of direct materials available for use | $ | | |
| Less direct materials inventory, June 30 | | | |
| Cost of direct materials placed in production | $ | | |
| Direct labor | | | |
| Factory overhead | | | |
| Total manufacturing costs | | | |
| Total work in process during the period | | $ | |
| Less work in process inventory, June 30 | | | |
| Cost of goods manufactured | | | |
| Cost of finished goods available for sale | | | $ |
| Less finished goods inventory, June 30 | | | |
| Cost of goods sold | | | $ |
