Tuscarora,Inc.,a merchandising company,has the following budgeted figures: Calculate the budgeted purchases for the month of January.

Question

Tuscarora,Inc.,a merchandising company,has the following budgeted figures:  Calculate the budgeted purchases for the month of January.

Quizplus · Accepted Answer

The budgeted purchases for the month of January can be calculated using the following formula: 
Budgeted Purchases = Cost of goods sold + Ending inventory - Beginning inventory
Here, Cost of goods sold = $32,500
Ending inventory = $5,650
Beginning inventory = $14,000
Therefore, the budgeted purchases = $32,500 + $5,650 - $14,000 = $23,150
Hence, the best choice is option C, which is closest to the calculated budgeted purchases.