A company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet.The balance of Finished Goods Inventory can be taken from the ________.

Question

Quizplus · Accepted Answer

The balance of Finished Goods Inventory can be calculated by subtracting the cost of goods sold, as calculated in the cost of goods sold budget, from the total production, as calculated in the production budget. Therefore, the production budget and cost of goods sold budget are the best sources for determining the balance of Finished Goods Inventory.

A Company Has Prepared the Operating Budget and the Cash