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Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear, 19,000 units; sports gear, 80,000 units; and apparel, 48,500 units.
Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear, 19,000 units; sports gear, 80,000 units; and apparel, 48,500 units. Management believes each of these inventories is too high and begins a new policy that ending inventory in any month should equal 30% of the budgeted sales units for the following month. Budgeted sales units for March, April, May, and June follow. Required: 1. Prepare a merchandise purchases budget (in units only) for each product for each of the months of March, April, and May. Required: 1. Prepare a merchandise purchases budget (in units only) for each product for each of the months of March, April, and May. \begin{tabular}{|l|l|l|l|} \hline APPAREL & & & \\ \hline Add: Desired ending inventory & & & \\ \hline Next period budgeted sales units & & & \\ \hline Ratio of ending inventory to future sales & & & \\ \hline & & & \\ \hline Total required units & & & \\ \hline Units to purchase & & & \\ \hline \end{tabular}
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