Cost of goods sold budget OBJ. 4 Prepare a cost of goods sold budget for Magnolia Candle Inc. using the information in Practice Exercises -3B and -4B. Assume the estimated inventories on January 1, 2016, for finished goods and work in process were $9,800 and $3,600, respectively. Also assume the desired inventories on December 31, 2016, for finished goods and work in process were $12,900 and $3,500, respectively. Factory overhead was budgeted at $109,600.