If a company has a beginning merchandise inventory of $50,000, a desired endingmerchandise inventory of $30,000, and a budgeted cost of goods sold of $300,000,what is the amount of required inventory purchases?a. $320,000 c. $380,000b. $280,000 d. $300,000

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A: As per equation, Required Purchases(units)  = Forecasted sales+ desired ending inventory-beginning…

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A:

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Q: Prepare cash budget,

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.