Budget Information Table Finished goods ending inventory Finished goods beginning inventory MOH costs in production Direct labor costs in production Direct materials ending inventory Direct materials beginning inventory Direct materials purchases Income taxes Interest expense selling and administrative expense Sales revenue 150,000 100,000 462,000 336,000 24,000 16,000 260,000 74,000 3,000 812,000 2,000,000 Cost of Goods Sold Calculation Direct materials purchases Direct materials beginning inventory Less: direct materials ending inventory Direct materials costs in production Direct labor costs in production MOH costs in production Cost of goods manufactured Finished goods beginning inventory Less: finished goods ending inventory Cost of goods sold Budgeted Income Statement Sales revenue Cost of goods sold Gross margin Selling & administrative expenses Operating income Interest expense Net income before taxes Income taxes Net income after taxes