 Hello in this lecture, we're going to continue with the master budget part for if you haven't looked at the previous three parts Take a look at those will be continuing in part four with the budgeted cost of goods manufactured and cost of goods sold We will be able to at the end of this list components of the master budget Compile budgeted cost of goods manufactured and then compile the budgeted cost of goods sold Okay, so let's go through the list again what we the order in which we need to see the budget We're going to do the sales budget first That's going to be the first thing we need to do in order to do the production budget Once that has been done then we can take a look at the direct materials budget the direct labor budget and the overhead budget as well as the capital expenditures we may need for that time period and the selling and Administrative budget then we can do the cash budget and then we're going to move on to basically the balance sheet And we are looking at calculations that will be needed in order for the cost of goods sold section in the balance sheet at this point So in order to create the balance sheet We need the cost of goods sold and now in order to have the cost of goods sold for a manufacturing company We're going to to work on the cost of goods Manufactured that's what we'll be taking a look at here Then moving on to the balance sheet and income statement and statement of cash flows are the statements that could be done after That point in time All right, then we're going to go through that what we have done so far These are going to be the budgets that we have done so far quick Overviews because we will be jumping back to these in order to complete what we are going to do today Cost of goods manufactured and cost of goods sold so we started off with the sales budget which looked like this We then did the production budget in step two Then we did step three raw materials budget and then we did step for the direct labor budget and then we did The factory overhead budget the selling and expense budget and the general administrative budgets We have all those pieces now and we're going to use those pieces going forward We then made the cash budget using many of those pieces now We're going to move forward from that to go to our major financial statements at the balance sheet the income statement these Statement of cash flows and we're going to use the next calculation in order to help us out with the income statement portion Which will be the cost of goods manufactured so that we can use that to get the cost of goods sold So that we could use that on the income statement All right, so here we have cost of goods manufactured. We're going to start off with the raw materials So the raw materials were pulling from the balance sheet from the prior period So this is the prior periods balance sheet Here's the raw materials that we're going to start with Beginning raw materials will be of course the same as the Indian raw materials in the prior period So we can get that from the financials from the prior period. Then we have the raw materials We're going to purchase how much are we going to buy we figured that out earlier and we did that in the raw materials budget So we did this budget and we came out to the raw materials purchases here 611 474 and that's what we're going to put right there So that's going to be the purchases that we will be then making and then we're going to have the less the raw materials Indian inventory so this is going to be similar to kind of the cost of goods sold calculation you