A merchandiser,provides the following information for its December budgeting process:
The November 30 inventory was 1,800 units.
Budgeted sales for December are 4,000 units.
Desired December 31 inventory is 2,840 units.
Budgeted purchases are:
A)5,040 units.
B)1,240 units.
C)6,840 units.
D)4,000 units.
E)5,800 units.

Question

A merchandiser,provides the following information for its December budgeting process: 
The November 30 inventory was 1,800 units.
Budgeted sales for December are 4,000 units.
Desired December 31 inventory is 2,840 units.
Budgeted purchases are:
A)5,040 units.
B)1,240 units.
C)6,840 units.
D)4,000 units.
E)5,800 units.

Quizplus · Accepted Answer

To calculate budgeted purchases, add the desired ending inventory to the budgeted sales and then subtract the beginning inventory: $2,840 + 4,000 - 1,800 = 5,040$ units.

A Merchandiser,provides the Following Information for Its December Budgeting Process