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Problem 22-5AA (Algo) Merchandising: Preparation of merchandise purchases budgets for three products LO P4 Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear. 20,500 units, sports gear, 79,500 units; and apparel. 48,000 units. Management believes each of these inventories is too high and begins a new policy that ending inventory in any month should equal 28% of the budgeted sales units for the following month. Budgeted sales units for March, April, May, and June follow. Budgeted Sales in Units March April May June Footwear 15,000 23, eee 31,50e 34,5ee Sports gear 68,eee 90.800 95,500 89, see Apparel 42,00 37,088 33, eee 23, eee Required: 1. Prepare a merchandise purchases budget (in units only for each product for each of the months of March April, and May KEGGLER'S SUPPLY Merchandise Purchases Budget March April May FOOTWEAR Next Merchandise Purchases Budget March April May 15,000 23,000 31 500 POTWEAR Add Beginning inventory units Add Desired ending inventory Next period budgeted sales units Ratio of ending inventory to future sales 31% 0 Total required units 15,000 23,000 31,500 Units to purchase PORTS GEAR Add Beginning inventory units Add: Desired ending inventory Next period budgeted sales units Ratio of ending inventory to future sales 68,000 90.000 95 500 Total required units Units to purchase PPAREL Add: Beginning inventory units Add Desired ending inventory Next period budgeted sales units Ratio of ending inventory to future sales

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