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Problem 22-5AA 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 22-5AA 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, 20,000 units; sports equipment, 80,000 units, and apparel, 50,000 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 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 15,000 25,000 32,000 35,000 70,000 90,000 95,000 90,000 40,000 38,000 37,000 25,000 Required: 1. Prepare a merchandise purchases budget (in units) for each product for each of the months of March, April, and May
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