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Kegglers Supply is a merchandiser of three different products. The companys February 28 inventories are footwear, 21,500 units; sports equipment, 80,000 units; and apparel, 49,500
Kegglers Supply is a merchandiser of three different products. The companys February 28 inventories are footwear, 21,500 units; sports equipment, 80,000 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 32% of the expected unit sales for the following month. Expected sales in units for March, April, May, and June follow.
Keggler's Supply is a merchandiser of three different products. The company's February 28 inventories are footwear, 21,500 units; sports equipment, 80,000 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 32% 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 14,500 25,000 32,000 35,500 71,500 88,000 95,500 89,000 40,000 38,000 32,000 23,000 Required: 1. Prepare a merchandise purchases budget (in units) for each product for each of the months of March, April, and May. KEGGLER'S 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 Budgeted ending inventory Budgeted units sales for month Required units of available merchandise Actual (or estimated) beginning inventory Budgeted purchases SPORTS EQUIPMENT Budgeted sales for next month Ratio of ending inventory to future sales Budgeted ending inventory Budgeted units sales for month Required units of available merchandise Actual (or estimated) beginning inventory Budgeted purchases APPAREL Budgeted sales for next month Ratio of ending inventory to future sales Budgeted ending inventory Budgeted units sales for month Required units of available merchandise | Actual (or estimated) beginning inventoryStep by Step Solution
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