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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

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 200,000 units in October. The merchandise cost per unit is $2.
\table[[Judgeted sales units,160,000,August,September],[Units to purchase,179,500,290,000,320,000]]
Prepare the merchandise purchases budgets for the months of July, August, and September.
\table[[,COMPANY,,],[Merchandise Purchases Budget],[,July,August,September],[,,,],[,,,],[Next period budgeted sales units],[Ratio of inventory to future sales],[,0,0,0],[Total required units],[Y,,,],[Units to purchase],[Cost per unit],[Cost of merchandise purchases,,,]]M
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