QS 22-29A Merchandising: Computing purchases LO P4 Lexi Company forecasts unit sales of 1,380,000 in April, 1,240,000 in May, 460,000 in June, and 1,440,000 in July. Beginning inventory on April 1 is 220,000 units, and the company wants to have 20% of next months sales in inventory at the end of each month. Prepare a merchandise purchases budget for the months of April, May, and June.

QS 22-29A Merchandising: Computing purchases LO P4 Lexi Company forecasts unit sales of 1,380,000 in April, 1,240,000 in May, 460,000 in June, and 1,440,000 in July. Beginning inventory on April 1 is 220,000 units, and the company wants to have 20% of next month's sales in inventory at the end of each month. Prepare a merchandise purchases budget for the months of April, May, and June. LEXI COMPANY Merchandise Purchases Budget For April, May, and June April May 460,000 June 1,440,000 20% 20% Next month's budgeted sales (units) Ratio of inventory to future sales Budgeted ending inventory (units) Budgeted units sales for month Required units of available inventory Beginning inventory (units) Units to be purchased 1,240,000 20% 248,000 1,380,000 1,628,000 L 92,000 1,240,000 1,332,000 248,000 1,084,000 288,000 460,000 748,000 92,000 656,000