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 1,920 units. Budgeted sales for December are 4,800 units. Desired December 31 inventory is 3,360 units. Budgeted purchases are:

Answer 1

Answer:

Budgeted purchase= 6,240 units

Explanation:

Giving the following information:

November 30 inventory was 1,920 units.

Budgeted sales for December are 4,800 units.

Desired December 31 inventory is 3,360 units

To calculate the number of units to be purchased, we need to use the following formula:

Budgeted purchase= sales in units + ending inventory - beginning inventory

Budgeted purchase= 4,800 + 3,360 - 1,920

Budgeted purchase= 6,240 units