Budgeted sales units HOCKEY DEN Merchandise Purchases Budget October November December 1,000 800 1,400 Add: Desired ending inventory Next period budgeted sales units 800 1,400 900 Ratio of inventory to future sales X 90% X 90% X 90% Desired ending inventory units Total required units Less: Beginning inventory units Units to purchase 720 1,260 810 1,720 2,060 2,210 1,010 720 1,260 710 1,340 950 Cost per unit Cost of merchandise purchases $ 60 $42,600 $ 60 $80,400 $ 60 $57,000 0:00 / 2:02 1x 4305 Knowledge Check 01 Shoe Time Company has budgeted ending merchandise inventory of 500 units, budgeted sales of 1,200 units, and beginning merchandise inventory of 200 units. What is Shoe Time's merchandise inventory to be purchased? 1,500 1,700 800 500