Operating budget help!

hkaur92

Hello everyone,

Was needing a little help when working out the Operating Budget in the sample assessments for Budgeting.
Can anyone explain to me from any of the assessments how you work out the "Costs of goods sold" and "closing inventory of finished goods"? These headings are stated after the cost of production. The example I was trying to work out was the Sample Assessment 2 for 2010.
Would be great if anyone could show me the workings.

Thank you!
Harinder

rosiefaith

Hello,

I work out CIOFG as-
total cost of production divided by your production then multiply by your units of closing inv of finished goods (on your production budget table)

Then costs of goods sold- opening inv of FG + costs of production then minus closing inv of FG.