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23 June, 15:38

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:

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  1. 23 June, 15:47
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    5,040 units

    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
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