Lexi Company budgets unit sales of 1,110,000 in April, 1,260,000 in May, 630,000 in June, and 1,880,000 in July. Beginning inventory on April 1 is 222,000 units, and the company wants to have 20% of next month's unit sales in inventory at the end of each month. The merchandise cost per unit is $0.50. Prepare a merchandise purchases budget for the months of April, May, and June. LEXI COMPANY Merchandise Purchases Budget Budgeted sales units April 1,110,000 May June 1,260,000 630,000 Add: Desired ending inventory ences Next period budgeted sales units Ratio of inventory to future sales 1,260,000 630,000 1,880,000 20% 20% 20% Desired ending inventory units Total required units Less: Beginning inventory units 222,000 Units to purchase Cost per unit $ 0.50 $ 0.50 $ 0.50 Cost of merchandise purchases $ 0 $ 558,000 $ 0