Kegglers Supply is a merchandiser of three different products. The companys February 28 inventories are footwear,20,000 units;

Question:

Keggler’s Supply is a merchandiser of three different products. The company’s February 28 inventories are footwear,20,000 units; sports equipment, 80,000 units; and apparel, 50,000 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 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 June May 25,000 32,000 35,000 70,000 38,000 37,000 25,000 Footwear. Sports equipment

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

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...