How many shovels should Benson Stores purchase for December?

Calculation of Shovels Purchase for December

Desired Ending Inventory: Bruner Stores wants 900 shovels in ending inventory on December 31.

Budgeted Sales: The budgeted sales for December are 2,500 shovels.

Beginning Inventory: The November 30 inventory of shovels was 500 units.

To determine how many shovels Benson Stores should purchase for December, we can use the equation for ending inventory:

Ending Inventory = Beginning Inventory + Total Inventory Purchased - Sales

900 = 500 + Total produced - 2,500

Total Purchased = 900 + 2,500 - 500

Total purchased = 2,900 shovels

Therefore, Benson Stores should purchase 2,900 shovels for December to meet the desired ending inventory of 900 shovels.