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OBJ.4 EX 22-16 Cost of goods sold budget Cost of goods sold, Dover Chemical Company uses oil to produce two types of plastic products, P1 and P2. $2,954,700 Dover budgeted 30,000 barrels of oil for purchase in April for $78 per barrel. Direct labor budgeted in the chemical process was $240,000 for April. Factory overhead was budgeted $375,000 during April. The inventories on April 1 were estimated to be: Oil ........ P1........... P2.... Work in process ........... $15,800 9,800 8,900 12,100 The desired inventories on April 30 were: Oil ........ P1..................................... $16,100 9,400 7,900 13,500 P2................................... Work in process ........... Use the preceding information to prepare a cost of goods sold budget for April 2013: DOVER CHEMICAL COMPANY Cost of Goods Sold Budget For the Month Ending April 30, 2013 Finished goods inventory, P1 and P2, April 1 Work in process inventory, April 1 Direct materials: Direct materials (oil) inventory, April 1 Direct materials (oil) purchases Cost of direct materials available for use Direct materials (oil) inventory, April 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, April 30 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, P1 and P2, April 30 Cost of goods sold

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