If a merchandiser's budgeted beginning inventory is $8,300, budgeted ending inventory is $9,400, and cost of goods sold is expected to be $10,260, then budgeted purchases should be $11,360.

Question

Quizplus · Accepted Answer

To calculate the budgeted purchases, we use the formula:

Budgeted Purchases = Cost of Goods Sold + Budgeted Ending Inventory - Budgeted Beginning Inventory

Plugging in the given values, we get:

Budgeted Purchases = $10,260 + $9,400 - $8,300
Budgeted Purchases = $11,360

Therefore, the statement is true.

If a Merchandiser's Budgeted Beginning Inventory Is $8,300, Budgeted Ending