If budgeted beginning inventory is $8,300, budgeted ending inventory is $9,400, and budgeted cost of goods sold is $10,260, budgeted purchases should be:
A) $860
B) $1,100
C) $1,960
D) $9,160
E) $11,360

Question

Quizplus · Accepted Answer

Budgeted purchases can be calculated using the formula: Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold. Rearranging gives Purchases = Cost of Goods Sold + Ending Inventory - Beginning Inventory. Substituting the given values: $10,260 + $9,400 - $8,300 = $11,360.

If Budgeted Beginning Inventory Is $8,300, Budgeted Ending Inventory Is