A. The budgeted amount for cost of goods manufactured is calculated in the same way as the actual cost of goods manufactured is calculated, except the amounts used are budgeted amounts instead of actual amounts.Cost of goods manufactured is calculated as follows:
Cost of Goods Manufactured = Direct Materials Used + Direct Labor Used + Manufacturing Overhead Applied + Beginning WIP Inventory - Ending WIP Inventory.
Direct Materials Used = Beginning Inventory + Purchases + Transportation-In – Net Returns – Ending Inventory.
B. The budgeted amount for cost of goods manufactured is calculated in the same way as the actual cost of goods manufactured is calculated, except the amounts used are budgeted amounts instead of actual amounts.
The budgeted amount for beginning work-in-process should also be included in the calculation of budgeted cost of goods manufactured.
C. The budgeted amount for cost of goods manufactured is calculated in the same way as the actual cost of goods manufactured is calculated, except the amounts used are budgeted amounts instead of actual amounts.
The budgeted amounts for beginning and ending work-in-process inventories should also be included in the calculation of budgeted cost of goods manufactured. Finished goods inventories should not be included.
D. The budgeted amount for cost of goods manufactured is calculated in the same way as the actual cost of goods manufactured is calculated, except the amounts used are budgeted amounts instead of actual amounts. Finished goods inventories are not included in the calculation of budgeted cost of goods manufactured.
