Step 1 prepare revenue budget

Step 2 Prepare production budget in unit

Step 3 Prepare the Direct Material Usage Budget and Direct Material Purchases Budget

Step 4 Prepare The Direct Manufacturing Labor Cost Budget

Step 5 Prepare The Manufacturing Overhead Cost Budget
Step 6 Prepare the Ending Inventories Budget

Step 7 Prepare the cost of goods sold budget

Step 8 Prepare the Nonmanufacturing cost budget

Step 9 Prepare the Budgeted Income Statement