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Keggler's Supply is a merchandiser of three different products. The company's February 28 inventories are footwear. 21,500 units: sports equipment, 73,500 units; and apparel, 50,000
Keggler's Supply is a merchandiser of three different products. The company's February 28 inventories are footwear. 21,500 units: sports equipment, 73,500 units; and apparel, 50,000 units. Management believes each of these inventories is too high. As a result, a new policy dictates that ending inventory in any month should equal 29% of the expected unit sales for the following month. Expected sales in units for March. April. May. and June follow. Budgeted Sales in Units March April May June Footwea r 14 , one 24, 5% 32 , 56m 34 , BBB Sports equipment EB,BBB 96,536 94,566 39.6%- Apparel 43. EBB 38, can 32 . 563 24 , BBB- Required: 1. Prepare a merchandise purchases budget [in units} for each product for each of the months of March. April, and May. FOOTWEAR Budgeted sales for next month Ratio of ending inventory to future sales Required units of available merchandise Budgeted Purchases SPORTS EQUIPMENT Ratio of ending inventory to future sales _ Required units of available merchandise __ APPAREL Required units of available merchandise __
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