In the merchandise purchases budget, the required purchases (in units)for a period can be determined by subtracting the beginning merchandise inventory (in units)from the budgeted sales (in units)and desired ending merchandise inventory (in units).

Merchandise Purchases Budget

A detailed plan used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period.

Required Purchases

The quantity of goods a company needs to buy to meet its production plans and sales forecast.