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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
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. July August September Budgeted sales units 180,000 315,000 270,000 Prepare the merchandise purchases budgets for the months of July, August, and September. Next period budgeted sales units Ratio of inventory to future sales Units to purchase Cost per unit Cost of merchandise purchases
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