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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, 81,500 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, 81,500 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. Budgeted Sales in Units March Footwear Sports gear Apparel 14,500 April 25,500 May 33,000 June 34,000 69,000 91,500 95,500 40,000 38,500 32,000 91,000 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. FOOTWEAR Add: Desired ending inventory KEGGLER'S SUPPLY Merchandise Purchases Budget March April May Next period budgeted sales units Ratio of ending inventory to future sales 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 Add: Desired ending inventory Next period budgeted sales units Ratio of ending inventory to future sales Total required units Units to purchase 0 Add: Beginning inventory units Budgeted sales units Desired ending inventory Less: Beginning inventory units

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