QS 20-29A (Algo) Merchandising: Merchandise purchases budget LO P4 Lexi Company budgets unit sales of 1,030,000 in April, 1,230,000 in May, 380,000 in June, and 1,420,000 in July. Beginning inventory on April 1 is 412,000 units, and the company wants to have 40% of next month's unit sales in inventory at the end of each month. The merchandise cost per unit is $0.50. Prepare a merchandise purchases budget for the months of April, May, and June. ok LEXI COMPANY Merchandise Purchases Budget ances April June Budgeted sales units May 1,230,000 1,030,000 Add: Desired ending inventory 1,230,000 380,000 40% 40% 492,000 152,000 412,000 Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Less: Beginning inventory units Units to purchase Cost per unit Cost of merchandise purchases $ $ 0.50 $ 0 $ 0.50 $ 0 $ 380,000 1,420,000 40% 568,000 0.50 0