Question: Baker Inc prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 19,000 units. Company policy is to end each month
Baker Inc prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 19,000 units. Company policy is to end each month with merchandise inventory equal to 10% of budgeted sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. The company budgets sales of 190,000 units in October. Sales (Unita) Purchases (Units) July 210,000 218,000 August 290,000 290,000 September 290,000 280,000 Prepare the merchandise purchases budgets for the months of July, August, and September Baker Inc Merchandise Purchases Budget For July August, and September July August September 19.000 Budgeted onding inventory units Required units of available inventory Units to be purchased 218,000 290.000 280,000
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