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Exercise 20-25A (Algo) Merchandising: Preparation of purchases budgets LO P4 Walker Company prepares...

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Accounting

Exercise 20-25A (Algo) Merchandising: Preparation of purchases budgets LO P4
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 25,500 units. The company budgets sales of 180,000 units in October. The merchandise cost per unit is $3.
\table[[,July,August,September],[Budgeted sales units,170,000,310,000,280,000],[Units to purchase,191,000,305,500,265,000]]
Prepare the merchandise purchases budgets for the months of July, August, and September.
\table[[WALKER COMPANY],[Merchandise Purchases Budget],[,July,August,September],[,,,],[,,,],[Next period budgeted sales units],[Ratio of inventory to future sales],[,0,0,0],[Total required units],[>,,,],[Units to purchase],[Cost per unit],[Cost of merchandise purchases,,,]]
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