QS 20-29A (Algo) Merchandising: Merchandise purchases budget LO P4 Lexi Company budgets unit sales of 1,370,000 in April, 1,240,000 in May, 600,000 in June, and 1,810,000 in July. Beginning inventory on April 1 is 548,000 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. LEXI COMPANY Merchandise Purchases Budget Budgeted sales units Add: Beginning inventory units Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Add: Beginning inventory units Units to purchase April 1,370,000 May June 1,240,000 600,000 40% 40% 40% Cost per unit Cost of merchandise purchases 0 $ 0 EA $ 0