Cost of Goods Sold Budget
The
cost of goods sold budget
indicates the total cost of producing the product
sold for a period. This budget is sometimes called the cost of goods manufactured
and sold budget, because it often also includes items budgeted to be in inventory.
This budget is created only after the production, direct materials, direct labor, and
overhead budgets are formed, because it relies on all of these budgets.
For example:
Figure lB–37 illust rates a cost of goods sold budget for Robin
Manufacturing.
Figure 18–37 Cost of Goods Sold Budget
Robin Manu facturing Company Cost of Goods Sold Budget
for the Quarter Ended September 30, Year 1
From
July
August
September
Quarter
Ref #
Beginning finished goods inventory, 7/1/Year 1
(8,000 units @$76.865)
(12,000 units @$76.865)
