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Please answer the question clearly. Keggler's Supply is a merchandiser of three different products. The company's February 28 inventories are footwear, 18,500 units; sports equipment.
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Keggler's Supply is a merchandiser of three different products. The company's February 28 inventories are footwear, 18,500 units; sports equipment. 80,000 units, and apparel, 49,000 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 28% 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 14,500 24,000 31,000 34,500 Sports equipment 69,580 91,580 96,00 90,500 Apparel 42,00 37.000 33,000 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 FOOTWEAR Budgeted sales for next month Ratio of ending inventory to future sales April May 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 for next month Ratio of ending inventory to future sales Required units of valable merchandise Budgeted purchases Step by Step Solution
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