Required information Aly Dog Food, Inc. (ADFI) is a wholesaler of dog food. ADFI's only business is purchasing bags of dog food from a major pet manufacturer and reselling the bags of dog food to small pet shops on account. Merchandise Purchases Budget The following table shows the actual monthly unit sales for the second quarter (April through June) followed by budgeted monthly sales for the third and fourth quarters (July through December): At the end of each month, ADFI prefers to have enough bags of dog food on hand to meet 40% of its budgeted sales for the following month. ADFI pays $6.00 per bag when purchasing the dog food from its supplier, and all purchases are made on account. Pequirement 3: Create a Merchandise Purchases Budget for the quarter ended September 30. Watch Tip Video