How many budgeted purchases are required given a desired ending inventory of 900 units and budgeted sales of 2,650 units for December?

To determine the number of budgeted purchases required, you need to consider both the desired ending inventory and the budgeted sales for December. The formula to calculate the required purchases is:

Required Purchases = (Budgeted Sales + Desired Ending Inventory) - Beginning Inventory

Assuming that there's no beginning inventory provided in the question, it would be considered as zero for the purpose of this calculation.

Using the available information:

• Budgeted sales for December: 2,650 units
• Desired ending inventory: 900 units

Plugging these values into the formula, you calculate the required purchases as follows:

Required Purchases = (2,650 units + 900 units) - 0 units
Required Purchases = 3,550 units

However, since the question focuses directly on how many purchases are needed without considering any beginning inventory, we can simplify our thinking.

If you add the budgeted sales to the desired ending inventory without considering a beginning inventory, it might indicate that you need the total of these two figures accounted for, leading to the total of units needed for purchase to satisfy sales and ending inventory regardless of prior stocks.

If we break it down as follows:

• The total units required to meet sales and desired inventory