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).

Merchandise Purchases Budget

A financial plan outlining the projected purchases of merchandise for resale over a certain period, considering expected sales and inventory levels.

Required Purchases

Required purchases are the amount of goods a company needs to buy in order to meet its sales demand and maintain its inventory at a desired level.