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Sergeeva-Olga [200]
2 years ago
13

Liu Electronics budgeted sales of $400,000.00 for the month of November and cost of goods sold equal to 65 percent of sales. Beg

inning inventory was $80,000.00 and ending inventory is estimated at $72,000.00. The budgeted purchases for November are:________
Business
1 answer:
Leno4ka [110]2 years ago
8 0

Answer:

Purchases= $252,000

Explanation:

Giving the following information:

Sales= $400,000

Cost of goods sold equal to 65 percent of sales.

Beginning inventory= $80,000

Ending inventory= $72,000

To calculate the purchase required, we need to use the following formula:

Purchases= sales + desired ending inventory - beginning inventory

Purchases= (400,000*0.65) + 72,000 - 80,000

Purchases= $252,000

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