Kegglers Supply is a merchandiser of three different products. The companys February 28 inventories are footwear, 20,000 units; sports equipment, 80,000 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 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	15,000	25,000	32,000	35,000
Sports equipment	70,000	90,000	95,000	90,000
Apparel	40,000	38,000	37,000	25,000

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
Ratio of ending inventory to future sales
		0
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