Question

Bentels Co. desires a December 31 ending inventory of 2,840 units. Budgeted sales for December are 4,000 units. The November 30 inventory was 1,800 units. Budgeted purchases are:

A.5,040 units.
B. 1,240 units.
C. 6,840 units.
D. 4,000 units.
E. 5,800 units.

Answer 1

Answer:

Budgeted purchases      Units

Budgeted sales                4,000

Ending inventory               2,840

Beginning inventory         (1,800)      

Budgeted purchases          5,040      

The correct answer is A                                                                                                                  

Explanation:

Budgeted purchases equal budgeted sales plus ending inventory minus beginning inventory.