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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

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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 36,000 units. The company budgets sales of 190,000 units in October. The merchandise cost per unit is $2. WALKER COMPANY \begin{tabular}{|l|r|r|r|} \hline \multicolumn{2}{|c|}{ Merchandise Purchases Budget } & August & September \\ \hline Budgeted sales units & July & 290,000 & 300,000 \\ \hline Add: Desired ending inventory & & & \\ \hline Next period budgeted sales units & & & \\ \hline Ratio of inventory to future sales & & 0 & \\ \hline Desired ending inventory units & & & \\ \hline Total required units & & & \\ \hline & & & \\ \hline Units to purchase & & & \\ \hline Cost per unit & & & \\ \hline Cost of merchandise purchases & & & \\ \hline \end{tabular}

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