Keggler's Supply is a merchandiser of three different products. Beginning Inventories for March are footwear, 21,500 units; sports gear, 78,000 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. Budgeted Sales in Units Footwear Sports gear Apparel March 16,000 April 27,000 May 30,500 June 35,500 70,500 88,500 96,000 89,000 40,000 37,000 33,000 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 Budgeted sales units KEGGLER'S SUPPLY Merchandise Purchases Budget March April 16,000 27,000 May 30,500 Add: Desired ending inventory Next period budgeted sales units 27,000 30,500 35,500 Ratio of ending inventory to future sales 30% 30% 30% 9,150 10,650 Total required units 16,000 38,150 41,150 Units to purchase SPORTS GEAR Budgeted sales units 2,600 28,050 32,000 70,500 88,500 98,000 Add: Desired ending inventory Next period budgeted sales units 88,500 98,000 89,000 Ratio of ending inventory to future sales 30% 30% 30% Total required units Less: Beginning inventory units Units to purchase 78,000 26,550 28,800 19,050 90,750 93,900 APPAREL Budgeted sales units 40,000 37,000 33,000 Add: Desired ending inventory Next period budgeted sales units 37,000 33,000 24,000 Ratio of ending inventory to future sales 30% 30% 30% Total required units Less: Beginning inventory units Units to purchase 48,500 11,100 9,900 2,600 35,800 30,300