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Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear, 18,500 units; sports gear, 81,000 units; and apparel, 49,500 units.
Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear, 18,500 units; sports gear, 81,000 units; and apparel, 49,500 units. Management believes each of these inventories is too high and begins a new policy that ending inventory in any month should equal 31% of the budgeted sales units for the following month. Budgeted sales units for March, April, May, and June follow. June Footwear Sports gear Apparel Budgeted Sales in Units March April May 15,500 27,000 33,500 36,500 69,500 89,000 94,500 89,500 40,500 37,500 33,500 24,000 Required: 1. Prepare a merchandise purchases budget (in units only) for each product for each of the months of March, April, and May. KEGGLER'S SUPPLY Merchandise Purchases Budget March April May FOOTWEAR Add: Desired ending inventory Next period budgeted sales units Ratio of ending inventory to future sales 0 Total required units Units to purchase SPORTS GEAR Add: Desired ending inventory Next period budgeted sales units Ratio of ending inventory to future sales Total required units Units to purchase APPAREL Des ending inventory Next period budgeted sales units Ratio of ending inventory to future sales Total required units Units to purchase
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