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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

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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, 21,500 units; sports gear, 80,000 units; and apparel, 49,000 units. Management believes each of these inventories is too high and begins a new policy that ending inventory in any month should equal 28% of the budgeted sales units for the following month. Budgeted sales units for March, April, May, and June follow. Footwear Sports gear Apparel Required: Budgeted Sales in Units March 14,500 April 25,000 May June 68,500 91,500 95,000 35,000 90,500 40,500 37,000 32,000 23,000 30,500 1. Prepare a merchandise purchases budget (in units only) for each product for each of the months of March, April, and May.

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