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Raider-X Company budgets sales of 19,000 units for April and 21,000 units for May. Beginning inventory on April 1 is 5,700 units, and the
Raider-X Company budgets sales of 19,000 units for April and 21,000 units for May. Beginning inventory on April 1 is 5,700 units, and the company wants to have 30% of next month's unit sales in inventory at the end of each month. The merchandise cost per unit is $2. Prepare a merchandise purchases budget for the month of April. RAIDER-X COMPANY Merchandise Purchases Budget Budgeted sales units April 19,000 Add: Desired ending inventory Next period budgeted sales units 21,000 Ratio of inventory to future sales Desired ending inventory units Total required units Less: Beginning inventory units Units to be purchased Cost per unit Cost of merchandise purchases 0 $ 0
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