Chapter $20$ Homework

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$12$

Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to $15\%$ of budgeted unit sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. Beginning inventory on July $1$ is $28,500$ units. The company budgets sales of $220,000$ units in October. The merchandise cost per unit is $$3.$

$0\mathrm{.}9$

$\backslash$table$[[,$July,August,September$],[$Budgeted sales units,$190,000,320,000,300,000],[$Units to purchase,$209,500,317,000,288,000]]$

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Prepare the merchandise purchases budgets for the months of July, August, and September.

$\backslash$table$[[$WALKER COMPANY$],[$Merchandise Purchases Budget$],[,$July,August,September$],[$Budgeted ending inventory $($units$),190,000,320,000,300,000],[$Add: Desired ending inventory$],[$Next period budgeted sales units$],[$Ratio of inventory to future sales$],[$Desired ending inventory units,$0,0,0],[$Total required units$],[$Less: Beginning inventory units$],[$Units to purchase$],[$Cost per unit$],[$Cost of merchandise purchases,,,$]]$