QS 22-29A (Algo) Merchandising: Merchandise purchases budget LO P4

Lexi Company budgets unit sales of 1,410,000 in April, 1,220,000 in May, 580,000 in June, and 1,330,000 in July. Beginning inventory on April 1 is 423,000 units, and the company wants to have 30% of next months 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.