Cost of Goods Sold Budget

The cost of goods sold budget integrates the direct materials purchases budget, direct labor cost budget, and factory overhead cost budget. Estimated and desired inventories for direct materials, work in process, and finished goods must also be integrated into the cost of goods sold budget.

Complete the preparation of the cost of goods sold budget for LearnCo, using information that follows provided by the controller, and using the previous budgets you have prepared.

LearnCo Cost of Goods Sold Budget For the Year Ending December 31, 20Y2
Finished goods inventory, January 1, 20Y2			$9,870
Work in process inventory, January 1, 20Y2		$2,010
Direct materials:
Direct materials inventory, January 1, 20Y2	$1,600
Direct materials purchases	___
Cost of direct materials available for use	$___
Direct materials inventory, December 31, 20Y2	(1,440)
Cost of direct materials placed in production	$___
Direct labor	___
Factory overhead	___
Total manufacturing costs		___
Total work in process during period		$____
Work in process inventory, December 31, 20Y2		(1,250)
Cost of goods manufactured			___
Cost of finished goods available for sale			$___
Finished goods inventory, December 31, 20Y2			(1,500)
Cost of goods sold			$___