Question: ( Please help me check over my work. ) . Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory

(Please help me check over my work.). Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 10% 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 19,000 units. The company budgets sales of 180,000 units in October. The merchandise cost per unit is $3. Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to \(10\%\) 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 19,000 units. The company budgets sales of 180,000 units in October. The merchandise cost per unit is \$3.
\begin{tabular}{lccr}
& July & August & September \\
Budgeted sales units & 190,000 & 290,000 & 310,000\\
Units to purchase & 200,000 & 292,000 & 297,000
\end{tabular}
Prepare the merchandise purchases budgets for the months of July, August, and September.
\begin{tabular}{|l|l|l|l|}
\hline \multicolumn{4}{|c|}{WALKER COMPANY}\\
\hline \multicolumn{4}{|c|}{Merchandise Purchases Budget}\\
\hline & July & August & September \\
\hline Budgeted sales units & 190,000 & 290,000 & 310,000\\
\hline Add: Desired ending inventory & & & \\
\hline Next period budgeted sales units & 290,000 & 310,000 & 180,000\\
\hline Ratio of inventory to future sales & 10\% & 10\% & 10\%\\
\hline Desired ending inventory units & 29,000 & 31,000 & 18,000\\
\hline Total required units & 219,000 & 321,000 & 328,000\\
\hline Less: Beginning inventory units & 19,000 & 29,000 & 31,000\\
\hline Units to purchase & 200,000 & 292,000 & 297,000\\
\hline Cost per unit & \$ 3 & \$ 3 & \$ 3\\
\hline Cost of merchandise purchases & 600,000 & 876,000 & 891,000\\
\hline
\end{tabular}
( Please help me check over my work. ) . Walker

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