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 27,000 units. The company budgets sales of 200,000 units in October. The merchandise cost per unit is $2. Prepare the merchandise purchases budgets for the months of July, August, and September.

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July August September Budgeted sales units 180,000 315,000 270,000 .... .. Units to purchase 200,250 308,250 259,500