The inventory,purchases,and cost of goods sold budget determines cost of goods sold for the budgeted income statement,and ending Merchandise Inventory for the budgeted balance sheet.

Question

Quizplus · Accepted Answer

The inventory, purchases, and cost of goods sold budget is used to calculate the cost of goods sold on the budgeted income statement, as well as the ending merchandise inventory on the budgeted balance sheet. This is because these budgets provide information on the cost of the goods that are purchased, sold, and remaining in inventory during the budget period.

The Inventory,purchases,and Cost of Goods Sold Budget Determines Cost of Goods