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Problem 20-5AA Merchandising: Preparation and analysis of purchases budgets LO P4 Keggler's Supply is a merchandiser of three different products. The company's February 28 Inventories
Problem 20-5AA Merchandising: Preparation and analysis of purchases budgets LO P4 Keggler's Supply is a merchandiser of three different products. The company's February 28 Inventories are footwear 21.000 units sports equipment, 81,500 units, and apparel. 48.500 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 30% of the expected unit sales for the following month. Expected sales in units for March April May, and June follow. Footwear Sports equipment Apparel Budgeted Sales In Units March April May June 16,000 26,500 33,000 34,000 69,500 90,000 95,000 89.500 40,000 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. HOT March April, and may March April May FOOTWEAR Budgeted sales for next month 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 Rurated thases
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