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

Question

Quizplus · Accepted Answer

To calculate budgeted purchases: Desired ending inventory (2,840 units) + Budgeted sales (4,000 units) - Beginning inventory (1,800 units) = 5,040 units.

Flack Corporation, a Merchandiser, Provides the Following Information for Its