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Problem 2 2 - 5 AA ( Algo ) Merchandising: Preparation of merchandise purchases budgets for three products LO P 4 Keggler's Supply is a

Problem 22-5AA (Algo) Merchandising: Preparation of merchandise purchases budgets for three products LO P4
Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear, 19,500 units; sports gear, 78,000 units; and apparel, 49,500 units. Management believes each of these inventories is too high and begins a new policy that ending inventory in any month should equal 29% of the budgeted sales units for the following month. Budgeted sales units for March, April, May, and June follow.
\table[[,Budgeted Sales in Units],[,March,April,May,June],[Footwear,14,500,27,000,34,000,36,000],[Sports gear,70,000,90,000,95,500,89,000],[Apparel,42,000,39,000,33,000,22,000]]
Required:
Prepare a merchandise purchases budget (in units only) for each product for each of the months of March, April, and May.
\table[[KEGGLER'S SUPPLY,],[,Merchandise Purchases Budget,,],[,March,April,May],[FOOTWEAR,,,],[Budgeted sales units,19,500,,],[Add: Desired ending inventory,,,],[Next period budgeted sales units,,,],[Ratio of ending inventory to future sales,,,],[,,,],[Total required units,,,],[,,,],[Units to purchase,,,],[SPORTS GEAR,,,],[Budgeted sales units,,,],[Add Desired ending inventory,,,]]
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