Lawrence Corporation desires a December 31 ending inventory of 900 units. Budgeted sales for December are 2,650 units. The November 30 inventory was 750 units. What are budgeted purchases in units?

Question

Quizplus · Accepted Answer

To determine the budgeted purchases in units, we need to use the following formula:

Budgeted Purchases = Desired Ending Inventory + Budgeted Sales - Beginning Inventory

Substituting the given values, we get:

Budgeted Purchases = 900 + 2,650 - 750
Budgeted Purchases = 2,800

Therefore, the best choice is B - 2,800.

Lawrence Corporation Desires a December 31 Ending Inventory of 900