Benson Stores wants to have 500 flashlights in ending inventory on December 31.Budgeted sales for December are 1,950 flashlights.The November 30 inventory was 300 flashlights.How many flashlights should Benson Stores purchase for December?

Question

Quizplus · Accepted Answer

Benson Stores wants to have 500 flashlights in ending inventory on December 31.

Budgeted sales for December are 1,950 flashlights.

Therefore, Benson Stores needs a total of 2,450 flashlights (500 ending inventory + 1,950 budgeted sales).

The November 30 inventory was 300 flashlights.

Hence, 2,150 flashlights should be purchased for December (2,450 needed - 300 on hand).

Therefore, the best choice is C) 2,150.

Benson Stores Wants to Have 500 Flashlights in Ending Inventory