Business, 05.04.2021 23:50 meg12331

Merchandising: Preparation of purchases budgets (for three periods) LO P4 Walker Company prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 30,000 units. Company policy is to end each month with merchandise inventory equal to 15% of budgeted sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. The company budgets sales of 200,000 units in October.
Sales (Units) Purchases (Units) July 180,000 200,250 August 315,000 308,250 September 270,000 259,500
(1) Prepare the merchandise purchases budget for the months of July, August, and September.
WALKER COMPANY
Merchandise Purchases Budget
For July, August, and September
JulyAugustSeptember
Budgeted ending inventory units 30,000
Budgeted units sales for month
Required units of available inventory
Beginning inventory (units)
Units to be purchased200,250308,250259,500
(2) Compute the ratio of ending inventory to the next month’s sales.
JulyAugustSeptember
Budgeted ending inventory units 30,000
Next month's budgeted sales
Ratio of inventory to next month's sales 0
(3) How many units are budgeted for sale in October?
Units budgeted for sale in October

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