Which of the following is not required to calculate cost of goods sold in the budgeted income statement?

Question

Quizplus · Accepted Answer

Direct material purchases expected during the period is not required to calculate cost of goods sold in the budgeted income statement as the cost of goods sold is calculated using the direct material costs used and direct labor costs incurred, as well as manufacturing overhead costs incurred. The expected direct material purchases would be used to calculate the total cost of raw materials needed, but not necessarily included in the cost of goods sold calculation.

Which of the Following Is Not Required to Calculate Cost