Budgeted cost of Merchandise: Budgeted cost of Merchandise are the estimates of purchases cost of a particular month based on the budgeted cost of goods sold and ending inventory and the budgeted beginning inventory. B u d g e t e d cost o f m e r c h a n d i s e = B u d g e t e d cos t o f g o o d s s o l d + E n d i n g i n v e n t o r y – B e g i n n i n g i n v e n t o r y This is how we calculate budgeted purchases for a particular month. Requirement: Budgeted cost of Merchandise purchases for July

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Chapter 22, Problem 30QS

To determine

Concept Introduction:

Budgeted cost of Merchandise:

Budgeted cost of Merchandise are the estimates of purchases cost of a particular month based on the budgeted cost of goods sold and ending inventory and the budgeted beginning inventory.

Budgeted cost of merchandise =Budgetedcost of goods sold+Ending inventory–Beginning inventory

This is how we calculate budgeted purchases for a particular month.

Requirement:

Budgeted cost of Merchandise purchases for July

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