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Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 16,700 barrels of oil for purchase in June for $67 per barrel. Direct labor budgeted in the chemical process was $123,100 for June. Factory overhead was budgeted at $201,400 during June. The inventories on June 1 were estimated to be:

Oil	$8,600
P1	5,800
P2	4,900
Work in process	7,100

The desired inventories on June 30 were:

Oil	$9,500
P1	5,300
P2	4,700
Work in process	7,400

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			$_____
Work in process inventory, June 1		$_____
Direct materials:
Direct materials inventory, June 1	$______
Direct materials purchases	______
Cost of direct materials available for use	$_____
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		$________
Work in process inventory, June 30		________
Cost of goods manufactured			_______
Cost of finished goods available for sale			$______
Finished goods inventory, June 30			$______
Cost of goods sold			$______

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