Preparing Cost of Goods Sold Budget Prepare a cost of goods sold budget for the Crest Hills Manufacturing Co. for the year ended December 31, 2016, from the following estimates. Inventories of production units: Finished Goods $19,300 22,400 January 1, 2016 December 31, 2016 Direct materials purchased during the year, $854,000; beginning inventory of direct materials, $31,000; and ending inventory of direct materials, $26,000. Totals from other budgets included: Direct labor cost $539,500 818,000