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

To determine how many flashlights Benson Stores should purchase for December, we need to calculate the desired ending inventory, which is 500 flashlights.

Next, we need to calculate the total number of flashlights needed for December sales and ending inventory. This is calculated as follows:

Total needed = Budgeted sales + Desired ending inventory - Beginning inventory 
Total needed = 1,950 + 500 - 300 
Total needed = 2,150

Therefore, Benson Stores should purchase 2,150 flashlights for December, which is option C.

Benson Stores Wants to Have 500 Flashlights in Ending Inventory