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Lexi Company budgets unit sales of 1,200,000 in April, 1,200,000 in May, 970,000 in June, and 1,130,000 in July. Beginning inventory on April 1 is 210,000 units, and the company wants to have 40% 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. May 1,200,000 June 970,000 LEXI COMPANY Merchandise Purchases Budget April Budgeted sales units 1,200,000 Add: Desired ending inventory Next period budgeted sales units 480,000 Ratio of inventory to future sales 40% Budgeted sales units 1,680,000 Total required units Less: Beginning inventory units Units to purchase Cost per unit Cost of merchandise purchases 0 $ 480,000 40% 388,000 40% 1,358,000 1,680,000 0 $ 0