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Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 1 5 % of budgeted unit sales for

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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 25,500 units. The company budgets sales of 180,000 units in October. The merchandise cost per unit is $3.
\table[[Budgeted sales units,July,August,September],[Units to purchase,170,000,300,000,320,000],[,189,500,303,000,299,000]]
Prepare the merchandise purchases budgets for the months of July, August, and September.
\table[[WALKER COMPANY,],[,,,],[,,July,September],[,,,],[Next period budgeted sales units,,,],[Ratio of inventory to future sales,,,],[,,,],[Total required units,,,],[,,,],[Units to purchase,,,],[Cost per unit,,,],[Cost of merchandise purchases,,,]]
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