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Keggler’s Supply is a merchandiser of three different products. The company’s February 28 inventories are footwear,...

Keggler’s Supply is a merchandiser of three different products. The company’s February 28 inventories are footwear, 21,500 units; sports equipment, 80,000 units; and apparel, 48,000 units. Management believes each of these inventories is too high. As a result, a new policy dictates that ending inventory in any month should equal 28% of the expected unit sales for the following month. Expected sales in units for March, April, May, and June follow.

Budgeted Sales in Units
March April May June
Footwear 14,500 24,000 30,000 35,000
Sports equipment 69,500 90,000 95,000 89,500
Apparel 41,000 38,500 32,500 23,000


Required:
1. Prepare a merchandise purchases budget (in units) for each product for each of the months of March, April, and May.

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ekkarill92 answered 1 year ago
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