(Solution) - Delaware Chemical Company uses oil to produce two types of -(2025 Original AI-Free Solution)

Paper Details

Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Deleware budgeted 25,000 barrels of oil for purchase in September for $72 per barrel. Direct labor budgeted in the chemical process was $210,000 for September. Factory overhead was budgeted $325,000 during September. The inventories on September 1 were estimated to be:

Oil . . . . . . . . . . . . . . . . . . . $14,600
P1 . . . . . . . . . . . . . . . . . . . 9,800
P2 . . . . . . . . . . . . . . . . . . . 8,600
Work in process . . . . . . . . 12,100

The desired inventories on September 30 were:
Oil . . . . . . . . . . . . . . . . . . . $16,100
P1 . . . . . . . . . . . . . . . . . . . 9,100
P2 . . . . . . . . . . . . . . . . . . . 7,900
Work in process . . . . . . . . 13,000
Use the preceding information to prepare a cost of goods sold budget for September 2011.