dover chemical company uses oil to produce two types of plastic products p1 and p2 d 647748
Dover Chemical Company uses oil to produce two types of plastic products, P1 and P2. Dover budgeted 30,000 barrels of oil for purchase in June for $28 per barrel. Direct labor budgeted in the chemical process was $150,000 for June. Factory overhead was budgeted $275,000 during June. The inventories on June 1 were estimated to be:
|
Oil |
$15,300 |
|
P1 |
8,700 |
|
P2 |
9,200 |
|
Work in process |
11,800 |
The desired inventories on June 30 were:
|
Oil |
$12,200 |
|
P1 |
8,300 |
|
P2 |
9,500 |
|
Work in process |
10,700 |
Use the preceding information to prepare a cost of goods sold budget for June.