Kegglers Supply is a merchandiser of three different products. The companys February 28 inventories are footwear, 19,500 units; sports equipment, 81,500 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 30% 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
Footwear	14,000	24,000	33,500	35,000
Sports equipment	69,000	89,000	95,000	89,000
Apparel	41,000	37,500	33,500	22,000

Required: 1. Prepare a merchandise purchases budget (in units) for each product for each of the months of March, April, and May.

KEGGLERS SUPPLY
Merchandise Purchases Budget
For March, April, and May
	March	April	May
FOOTWEAR
Budgeted sales for next month	24,000	33,500	35,000
Ratio of ending inventory to future sales	30%	30%	30%
Budgeted ending inventory	28	10,050	10,500
Budgeted units sales for month
Required units of available merchandise
Budgeted purchases
SPORTS EQUIPMENT
Budgeted sales for next month
Ratio of ending inventory to future sales
Required units of available merchandise
Budgeted purchases
APPAREL
Budgeted sales for next month
Ratio of ending inventory to future sales
Required units of available merchandise
Budgeted purchases