Merchandise Purchases Budget

This video shows how to prepare a Merchandise Purchases Budget.
The Merchandise Purchases Budget is prepared by a retail company to ensure that it has plenty of inventory on hand. The Merchandise Purchases Budget uses the budgeted sales figures from the Sales Budget to help determine the amount of inventory to be purchased each period.
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[@marcelaonofre8412]

How did you get the $8000 for the Q4?

[@user19093]

Is merchandise purchase budget is similar like production budget? Sorry I'm not clear about that

[@jamescarlhenrysanon688]

How did you find the $8000 of the desired inventory for the 4th quarter?

[@successeries]

yes this is my question too

[@jamescarlhenrysanon688]

nazhdel mans because It has to either be given or be found based the informations given for the next quarter, but there was none.

[@datastudiosorg]

@@jamescarlhenrysanon688 it's an assumption, nothing obtainable from the data reported here

[@mousypants]

How is quarter 4 calculated?

[@ianneaguinaldo2153]

i have a question. Why do u have a beginning inventory for qtr 1 if you have just started your business?

[@takimpeiwa4718]

Just started is subjective, it could mean 3 years ago, 5 months ago or as you've come to understand it, right now

[@TheTurbanatore]

Thanks

[@farshiamamun4912]

You should make your font bigger. It’s really hard to see

[@adamland9219]

Shouldn't the sales budget supposed to be Cost of Good Sold Budget?

[@neathsuon3895]

It can also be Budgeted unit sales

[@successeries]

How did you find the $8000 of the desired inventory for the 4th quarter?

[@kristenellen8112]

You take the 10% (0.10) x Q1 number of sales in units. In this case, it would be 4000. The number 8000 in this problem was a miscalculation.