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 Work in process inventory, January 1, 20Y2 Direct materials: Direct materials inventory, January 1, 20Y2 Direct materials purchases $1,600 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 $9,870 $2,010 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 Cost of goods sold (1,500)