Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 20% 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 40,000 units. The company budgets sales of 210,000 units in October. The merchandise cost per unit is $3. Budgeted sales units Units to purchase July 200,000 224,000 August 320,000 318,000 September 310,000 290,000 Prepare the merchandise purchases budgets for the months of July, August, and September. Answer is not complete. WALKER COMPANY Merchandise Purchases Budget Budgeted sales 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 July 200,000 August September 320,000 310,000 210,000 20% 0 0 42,000 352,000 40,000 Units to purchase Cost per unit $ 3 $ 3 $ 3 Cost of merchandise purchases