Keggler's Supply is a merchandiser of three different products. The company's February 28 inventories are footwear, 20,000 units, sports equipment, 79,500 units; and apparel, 49,500 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 28% of the expected unit sales for the following month. Expected sales in units for March, April, May, and June follow. Footwear Sports equipment Apparel Budgeted sales in Units March April May June 15,000 24,000 33,500 33,500 69,000 90,000 94,500 91,000 41,500 38,000 32,500 23,000 9,380 Required: 1. Prepare a merchandise purchases budget (in units) for each product for each of the months of March, April, and May. Budgeted sales for next month 24,000 33,500 33,500 Ratio of ending inventory to 28% 28% 28% future sales Budgeted ending inventory 6,720 9,380 Budgeted units sales for month Required units of available merchandise Actual (or estimated) beginning inventory Budgeted purchases 1,720 26,660 33,500 SPORTS EQUIPMENT Budgeted sales for next month 69,000 X Ratio of ending inventory to 28% future sales Budgeted ending inventory 25,200 Budgeted units sales for month Required units of available merchandise Actual (or estimated) beginning inventory 79,500 Budgeted purchases 14,700 91,260 93,540X APPAREL Budgeted sales for next month 41,500X Ratio of ending inventory to 28% future sales Budgeted ending inventory 11,620x Budgeted units sales for month 53,120X Required units of available merchandise 64,740 Actual (or estimated) beginning inventory 49,500 Budgeted purchases 3,620X 37,020X 29,960X) Keggler's Supply is a merchandiser of three different products. The company's February 28 inventories are footwear, 20,000 units, sports equipment, 79,500 units; and apparel, 49,500 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 28% of the expected unit sales for the following month. Expected sales in units for March, April, May, and June follow. Footwear Sports equipment Apparel Budgeted Sales in Units March April May June 15,000 24,000 33,500 33,500 69,000 90,000 94,500 91,000 41,500 38,000 32,500 23,000 Required: 1. Prepare a merchandise purchases budget (in units) for each product for each of the months of March, April, and May. May 33,500 28% 9,380 X Answer is not complete. KEGGLER'S SUPPLY Merchandise Purchases Budget For March, April, and May March April FOOTWEAR Budgeted sales for next 24,000 33,500 month Ratio of ending inventory to future sales 28% 28% Budgeted ending inventory 6,720 9,380 Budgeted units sales for month Required units of available merchandise Actual (or estimated) beginning inventory Budgeted purchases 1,720 26,660 SPORTS EQUIPMENT Budgeted sales for next 69,000 X month Ratio of ending inventory to future sales 28% Budgeted ending inventory 25,200 Budgeted units sales for month Required units of available merchandise Actual (or estimated) 79,500 beginning inventory Budgeted purchases 14,700 91,260 APPAREL Budgeted sales for next 41,500X month Ratio of ending inventory to 28% future sales 33,500 93,540X