A manufacturing 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 ________.
A) production budget and cost of goods sold budget
B) financial budget
C) cash budget
D) selling and administrative expenses budget

Question

Quizplus · Accepted Answer

The balance of Finished Goods Inventory can be taken from the production budget and cost of goods sold budget, as these budgets provide information on the quantity of goods produced and sold, and the associated costs, which can be used to determine the ending balance of Finished Goods Inventory. The financial budget, cash budget, and selling and administrative expenses budget do not provide direct information on the balance of Finished Goods Inventory.

A Manufacturing Company Has Prepared the Operating Budget and the Cash