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Baker Inc prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 28,500 units. Company policy is to end each month
Baker Inc prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 28,500 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 190,000 units in October Sales (Units) Purchases (Units) July 180,000 202,500 August 330,000 September 290,000 275,000 324,000 Prepare the merchandise purchases budgets for the months of July, August, and September Baker Inc Merchandise Purchases Budget For July, August, and September July August September 28.500 Budgeted ending inventory units Required units of available inventory Units to be purchased 202,500 324.000 275.000
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