What is the equation format for a purchases budget?

Steps: Preparing a Purchases Budget

1. Calculate the ending inventory for each quarter.
2. Enter projected unit sales for the quarter from the sales budget schedule.
3. Add ending inventory units and projected sales units to determine total units needed per quarter.
4. Enter beginning inventory, which is the same as ending inventory for the preceding quarter.
5. Subtract beginning inventory from total units needed to determine total unit purchases for the quarter.
6. Enter the unit cost for each quarter.
7. Multiply the unit purchases each quarter to determine the cost of purchases.

Sample Purchases Budget