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Walker Company prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 30,000 units. Company policy is to end each month

Walker Company prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 30,000 units. Company policy is to end each month with merchandise inventory equal to 15% of budgeted sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. The company budgets sales of 200,000 units in October.

Sales (Units) Purchases (Units)
July 170,000 191,000
August 310,000 308,500
September 300,000 285,000

Prepare the merchandise purchases budgets for the months of July, August, and September.

WALKER COMPANY
Merchandise Purchases Budget
For July, August, and September
July August September
Budgeted ending inventory units 30,000
Budgeted units sales for month 170,000 310,000 300,000
Required units of available inventory 330,000
Beginning inventory (units)
Units to be purchased 191,000 308,500 285,000

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