Which one of the following is the correct formula for determining budgeted merchandise purchases?
A)budgeted sales + desired ending inventory - beginning inventory
B)budgeted production - sales + beginning inventory - desired ending inventory
C)budgeted sales - cost of goods sold + desired ending inventory - beginning inventory
D)budgeted sales - cost of goods sold + beginning inventory - desired ending inventory

Question

Quizplus · Accepted Answer

The correct formula for determining budgeted merchandise purchases is budgeted sales + desired ending inventory - beginning inventory. This takes into account the projected sales, desired amount of inventory at the end of the budget period, and the amount of inventory already on hand at the beginning of the budget period.

Which One of the Following Is the Correct Formula for Determining