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If budgeted beginning inventory is $9,300, budgeted ending inventory is $10,600, and budgeted cost of goods sold is $11,260, budgeted purchases should be:_____.

Respuesta :

The purchase budget is $12,560.

What is the purchase budget?

  • A purchase budget is created to keep track of the value of the company's inventory and the number of goods sold.
  • It is also used to keep track of your monthly desired ending inventory value.
  • The purchase budget is frequently only a portion of a company's overall budget and is frequently found in the company's master budget.
  • Setting a purchasing budget is the foundation of your business.
  • It enables you to track your spending habits, set goals and pars, monitor when you exceed those goals, and recover from unexpected events or expenses.
  • The budget is developed using a straightforward formula: the desired ending inventory plus the cost of goods sold less the value of the beginning inventory.
  • This equation calculates your total purchase budget.

The purchase budget is:

  • (10,600 + 11,260) - 9300
  • 21,860 - 9,300
  • $12,560

Therefore, the purchase budget is $12,560.

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