If budgeted beginning inventory is $8,300, budgeted ending inventory is $9,400, and cost of goods sold is expected to be $10,260, then budgeted purchases should be $9,160.
Budgeted purchases = $9,400 + $10,260 - $8,300 = $11,360

Question

Quizplus · Accepted Answer

The correct calculation for budgeted purchases is:

Budgeted purchases = Budgeted ending inventory + Cost of goods sold - Budgeted beginning inventory 
Budgeted purchases = $9,400 + $10,260 - $8,300 
Budgeted purchases = $11,360

Therefore, the statement "budgeted purchases should be $9,160" is false.

If Budgeted Beginning Inventory Is $8,300, Budgeted Ending Inventory Is