Budgeted cost of goods manufactured is $135,600, finished goods on January 1 are $36,700 and finished goods on December 31 are $9,400. What is budgeted cost of goods sold?

1. Cost of goods manufactured of $135,600 is added to opening finished goods of $36,700. 2. Cost of finished goods available for sale is $135,600 plus $36,700, which is $172,300. 3. Finished goods still unsold at December 31 are $9,400 and are deducted. 4. Budgeted cost of goods sold is $172,300 minus $9,400, which is $162,900. 5. A transfer out of finished goods signals a sale, which is why the closing balance never reaches cost of goods sold. 6. $172,300 is the amount available for sale, not the amount expected to be sold. 7. $126,200 ignores the opening finished goods and deducts only the closing balance. _Source: Jonick, Principles of Managerial Accounting (UNG Press, CC BY-SA 4.0), section 7.7 Cost of Goods Sold Budget_