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.

Question

Quizplus · Accepted Answer

To calculate the budgeted purchases, we need to determine the total units needed for December and then subtract the November 30 inventory. The total units needed for December include the budgeted sales of 4,000 units plus the desired ending inventory of 2,840 units, totaling 6,840 units. Subtracting the November 30 inventory of 1,800 units from this total gives us the budgeted purchases: 6,840 units - 1,800 units = 5,040 units.