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

Sales (Units)Purchases (Units)July220,000235,000August320,000315,500September290,000276,500

Prepare a merchandise budget