Exercise 22-25A (Algo) Merchandising: Merchandise purchases budgets LO P4 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 30,000 units. The company budgets sales of 200,000 units in October. The merchandise cost per unit is $3. Budgeted sales units Units to purchase July 200,000 218,000 August 320,000 318,500 September 310,000 293,500 Prepare the merchandise purchases budgets for the months of July, August, and September. WALKER COMPANY Merchandise Purchases Budget July Next period budgeted sales units Ratio of inventory to future sales Total required units Units to purchase Cost per unit Cost of merchandise purchases August September