Question

Flack Corporation, a merchandiser, provides the following information for its December budgeting process: The November 30 inventory was 1,860 units. Budgeted sales for December are 4,650 units. Desired December 31 inventory is 3,255 units. Budgeted purchases are:______-

Answer 1

Answer:

Purchases= 6,045 units

Explanation:

Giving the following information:

The November 30 inventory was 1,860 units. Budgeted sales for December are 4,650 units. Desired December 31 inventory is 3,255 units

The purchases required are calculated using the following formula:

Purchases= sales + desired ending inventory - beginning inventory

Purchases= 4,650 + 3,255 - 1,860

Purchases= 6,045 units