QS 20-28A Merchandising: Computing purchases LO P4 Raider X Company forecasts sales of 18,000 units for April. Beginning inventory is 3,000 units. The desired ending inventory is 30% higher than the beginning inventory. How many units should Raider-X purchase in April? RAIDER X COMPANY Purchases Budget (in units) For Month Ended April 30 Required units of available inventory Units to be purchased QS 20-30A Merchandising: Purchases budget LO P4 Montel Company's July sales budget calls for sales of $600,000. The store expects to begin July with $50,000 of Inventory and to end the month with $40,000 of Inventory. Gross margin is typically 40% of sales. Determine the budgeted cost of merchandise purchases for July MONTEL COMPANY Computation of Budgeted Cost of Purchases For Month Ended July 31 Required available merchandise Budgeted cost of purchases Exercise 20-24A Merchandising: Preparation of purchases budgets (for three periods) LO P4 Walker Company prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 30,000 units. Company policy is to end each month with merchandise inventory equal to 15% of budgeted sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. The company budgets sales of 200,000 units in October. Sales (Units) Purchases (units) July 180,000 200,250 August 315,000 38,250 September 270,000 259,500 Prepare the merchandise purchases budgets for the months of July, August, and September WALKER COMPANY Merchandise Purchases Budget For July August, and September July August September 30.000 Budgetod ending inventory units Required units of available inventory 200.250 308 250 Units to be purchased 250 500