QS 22-29A (Algo) Merchandising: Merchandise purchases budget LO P4 Lexi Company budgets unit sales of 1,630,000 in April, 1,280,000 in May, 440,000 in June, and 1,180,000 in July. Beginning inventory on April 1 is 326,000 units, and the company wants to have 20% 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: Desired ending inventory 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 MEN June 440,000 30% Check my work 0.50 0

QS 22-29A (Algo) Merchandising: Merchandise purchases budget LO P4 Lexi Company budgets unit sales of 1,630,000 in Aprl, 1,280,000 in May, 440,000 in June, and 1,180,000 in July. Beginning inventory on Aprit 1 is 326,000 units, and the company wants to have 20% 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. QS 22-29A (Algo) Merchandising: Merchandise purchases budget LO P4 Lexi Company budgets unit sales of 1,630,000 in April, 1,280,000 in May, 440,000 in June, and 1,180,000 in July. Beginning inventory on April 1 is 326,000 units, and the company wants to have 20% 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