Question: Delaware Chemical Company uses oil to produce two types of

Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. 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 $ 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 2015.


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  • CreatedJune 27, 2014
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