You will need to use the numbers you calculate in some of the budgets in other budgets, so remember to look back at your work from earlier in the problem. Finished Goods Budget FIRST calculate the price for 1 unit for direct materials, direct labor and overhead. BIG HINT: FIXED OVERHEAD =(66,000/49,200) X .6 = .8 SECOND add these up to get the total unit cost. THIRD multiply the desired ending inventory number from the production budget by the unit cost, this is the number that will go in the top box on this budget (Desired ending Inventory) Cost of Good Sold Budget To calculate your direct materials amount multiply the amount you came up with in the finished goods budget for direct materials by the qtr total from the production budget Get the direct labor and overhead amounts from the direct labor budget and overhead budget For beginning inventory multiply the number they give you in the instructions by the unit cost You calculated the ending inventory in the finished goods budget