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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 AA Algo Merchandising: Preparation of merchandise purchases budgets for three products LO P
Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear, units; sports gear, units; and apparel, units. Management believes each of these inventories is too high and begins a new policy that ending inventory in any month should equal of the budgeted sales units for the following month. Budgeted sales units for March, April, May, and June follow.
tableBudgeted Sales in UnitsMarch,April,May,JuneFootwearSports gear,Apparel
Required:
Prepare a merchandise purchases budget in units only for each product for each of the months of March, April, and May.
tableKEGGLERS SUPPLY,Merchandise Purchases Budget,,March,April,MayFOOTWEARBudgeted sales units,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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