Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 15% of budgeted unit sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. Beginning inventory on July 1 is 24,000 units. The company budgets sales of 220,000 units in October. The merchandise cost per unit is $2. Prepare the merchandise purchases budgets for the months of July, August, and September. Electro Company manufactures transmissions for electric cars. Management reports ending finished goods inventory for the first quarter at 293,400 units. The following unit sales are budgeted during the rest of the year: second quarter, 489,000 units; third quarter, 321,000 units; and fourth quarter, 201,500 units. Company policy calls for the ending finished goods inventory of a quarter to equal 60% of the next quarter's budgeted unit sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture