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Kegglers Supply is a merchandiser of three different products. The companys February 28 inventories are footwear, 19,500 units; sports equipment, 81,500 units; and apparel, 49,500 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 30% 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	14,000	24,000	33,500	35,000
Sports equipment	69,000	89,000	95,000	89,000
Apparel	41,000	37,500	33,500	22,000

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

KEGGLERS SUPPLY Merchandise Purchases Budget For March, April, and May March April May FOOTWEAR Budgeted sales for next month 24,000 33,500 35,000 Ratio of ending inventory to future sales 30% 30% 30% Budgeted ending inventory 28 10,050 10,500 Budgeted units sales for month Required units of available merchandise Budgeted purchases SPORTS EQUIPMENT Budgeted sales for next month Ratio of ending inventory to future sales Required units of available merchandise Budgeted purchases APPAREL Budgeted sales for next month Ratio of ending inventory to future sales Required units of available merchandise Budgeted purchases

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