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 27,000 units. The company budgets sales of 200,000 units in October. The merchandise cost per unit is $2. Budgeted sales units Units to purchase July 180,000 200,250 August 315,000 308,250 September 270,000 259,500 Prepare the merchandise purchases budgets for the months of July, August, and September. WALKER COMPANY Budgeted ending inventory (units) Add: Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Less: Beginning inventory units Units to purchase Cost per unit Cost of merchandise purchases Merchandise Purchases Budget July 47,250 August September 40,500 30,000 0 0 0