Question

When preparing the budgeted income statement of a merchandising​ company, the amount of cost of goods sold can be taken from the​ ________. A. capital expenditures budget B. cost of goods sold budget C. ​inventory, purchases, and cost of goods sold budget D. budgeted balance sheet

Answer 1

Answer:

C. ​inventory, purchases, and cost of goods sold budget.

Explanation:

Option A is wrong because the capital expenditure budget shows the balance of non-current assets.

Option B is wrong because the is no separate cost of the good sold budget.

Option D is wrong because the balance sheet shows the asset liability and equity.

Option C is correct because, from the ​inventory, purchases, and cost of goods sold budget, we can get the amount of cost of goods sold, which requires beginning an ending inventory and purchase of raw materials.