Flack Corporation provides the following information for its
Flack Corporation provides the following information for its December budgeting process: The November 30 inventory was 2,000 units. Budgeted sales for December are 5,000 units. Desired December 31 inventory is 3,500 units. Budgeted purchases are: 8.500 units 3 500 units O 6.500 units O 5.ooo units D 7000 units
Solution
Budgeted purchase = Budgeted Sales+Desired ending inventory-Beginning inventory
= 5000+3500-2000
Budgeted purchase = 6500 Units
So answer is c) 6500 Units
