Answer:
Purchases= $57,530
Step-by-step explanation:
Giving the following formula:
Production= 91,500*(1 - 0.18)= $75,030
Beginning inventory= $25,000
Desired ending inventory= $7,500
To calculate the budgeted purchases, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 75,030 + 7,500 - 25,000
Purchases= $57,530