 Hello in this lecture we're going to continue on with our master budget and we're going to move on to the budgeted income statement at this point so quick recap once again we're going to go through the whole thing here just this does have to be done in order if we break it down into its pieces it's not too bad but we do have to start off with a sales budget then a production budget raw materials budget direct labor budget factory overhead budget selling expense budget general administrative budget and then we had some cash worksheets to help us out with the cash budget and then we did the cost of goods manufactured budget and now we're going to scroll down to the cost of goods sold budget those two items are going to be needed in order for us basically just to get that number on cost of goods sold for us to calculate on our income statement which is where we are at now now of course an income statement is basically income expenses we're going to start off with income called sales in this case so we've got total sales and we're going to pull that from up above so we're going to say this equal