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Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory...

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Accounting

Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 20% 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 40,000 units. The company budgets sales of 180,000 units in October. The merchandise cost per unit is $2.
\table[[Juty,August,September,],[Budgeted sales units,200,000,310,000,300,000],[Units to purchase,222,000,308,000,276,000]]
Prepare the merchandise purchases budgets for the months of July, August, and September.
\table[[WALKER COMPANY],[Merchandise Purchases Budget,],[Budgeted sales units,July,August,September],[Add: Desired ending inventory,200,000,310,000,300,000],[Next period budgeted sales units,,,],[Ratio of inventory to future sales,310,000,300,000,],[Desired ending inventory units,20%,20%,40,000],[Total required units,62,000,60,000,20%
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