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 30% of the budgeted sales units for the following month. Budgeted sales units for March, April, May, and June follow Footwear Sports gear Apparel Budgeted sales in Units March April May June 15,500 26,500 32,800 34,000 71,500 91,500 94,500 89,500 40,000 38,500 32,500 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 April May 26.500 32,000 KEGGLER'S SUPPLY Merchandise Purchases Budget March FOOTWEAR Budgeted sales units 15,500 Add: Desired ending inventory Next period budgeted sales units 26,500 Ratio of ending inventory to future sales 30% Desired ending inventory 7,950 Total required units 23,450 Less: Beginning inventory units 18,500 Units to purchase 4,950 32,000 30% 9,600 36,100 7,950 28.150 34,000 30% 10,200 42,200 SPORTS GEAR 71,500 91,500 94,500 91,500 94,500 89,500 30% 30% 30% 81,500 Budgeted sales units Add: Desired ending inventory Next period budgeted sales units Ratio of ending inventory to future sales Desired ending inventory Total required units Less: Beginning inventory units Units to purchase APPAREL Budgeted sales units Add: Desired ending inventory Next period budgeted sales units Ratio of ending inventory to future sales Desired ending inventory Total required units Less: Beginning inventory units Units to purchase 40,000 38,500 32,500 38,500 32,500 24,000 30% 30% 30% 9,750 11,550 51,550 49,500 7,200 39,700 48,250 11,550