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22 March, 18:36

Bruner Stores wants to have 500 shovels in ending inventory on December 31. Budgeted sales for December are 1,950 shovels. The November 30 inventory was 320 shovels. How many shovels should Benson Stores purchase for December?

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  1. 22 March, 18:56
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    Purchases = 2100 shovels

    Explanation:

    given data

    ending inventory = 500 shovels

    Budgeted sales = 1,950 shovels

    inventory = 320 shovels

    to find out

    How many shovels should Benson Stores purchase for December

    solution

    we know here ending inventory formula that is express as

    Ending inventory = Beginning inventory + Purchases - Sales ... 1

    put here value we will get Purchases

    so that

    500 = 320 + Purchases - 1950

    Purchases = 500 + 1950 - 350

    Purchases = 2100 shovels
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