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:

Answer 1

5,040 units

Step-by-step explanation:

We know that,

= Budgeted Sale units + ending inventory units - beginning inventory units

= 4,000 units + 2,840 units - 1,800 units

= 5,040 units

Simply we added the ending inventory units and deduct the beginning inventory units from the Budgeted Sale units so that the Budgeted purchases units can be computed