Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Keggler's Supply is a merchandiser of three different products. The company's February 28 inventories are footwear, 21,500 units; sports equipment, 81,500 units; and apparel, 48,000
Keggler's Supply is a merchandiser of three different products. The company's February 28 inventories are footwear, 21,500 units; sports equipment, 81,500 units; and apparel, 48,000 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 31% of the expected unlt sales for the following month. Expected sales in units for March April, May, and June follow. Footwear Sports equipment Apparel Budgeted Salen in Units March April May June 15,000 25,000 33,500 33,000 70,000 90,500 94,500 89,500 40,500 38,500 32,000 24,000 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 April May For March April, and May March FOOTWEAR Budgeted sales for next month Ratio of ending inventory to future sales Required units of available merchandise Duageteu sales for next monin Ratio of ending inventory to future sales 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started