Question

MC Qu. 80 Flack Corporation, a merchandiser,... Flack Corporation, a merchandiser, provides the following information for its December budgeting process: The November 30 inventory was 1,720 units. Budgeted sales for December are 4,300 units. Desired December 31 inventory is 3,010 units. Budgeted purchases are:

Answer 1

Budgeted purchases are 5,590 units

Step-by-step explanation:

Prepare a Purchases Budget as follows :

December

Budgeted Sales 4,300

Add Budgeted Closing Inventory 3,010

Total Purchases needed 7,310

Less Budgeted Opening Inventory (1,720)

Budgeted Purchases 5,590