Question

The budgeted merchandise purchases formula is: Budgeted Purchases = Beginning Inventory + ___________ - Ending Inventory.

A) Net Sales
B) Cost of Goods Sold
C) Operating Expenses
D) Gross Profit

Answer 1

The budgeted merchandise purchases formula is Budgeted Purchases = Beginning Inventory + Cost of Goods Sold - Ending Inventory.

Step-by-step explanation:

The correct answer for the blank in the budgeted merchandise purchases formula is B) Cost of Goods Sold.

The formula is: Budgeted Purchases = Beginning Inventory + Cost of Goods Sold - Ending Inventory.

This formula is used to calculate the estimated amount of purchases of merchandise based on the beginning inventory, the cost of goods sold, and the ending inventory.