Question: Problem 2 2 - 5 AA ( Algo ) Merchandising: Preparation of merchandise purchases budgets for three products LO P 4 Keggler's Supply is a

Problem 22-5AA (Algo) Merchandising: Preparation of merchandise purchases budgets for three products LO P4
Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear, 20,500 units; sports gear, 78,000 units; and apparel, 50,000 units. Management believes each of these inventories is too high and begins a new policy that ending inventory in any month should equal 29% of the budgeted sales units for the following month. Budgeted sales units for March, April, May, and June follow.
\table[[,Budgeted Sales in Units],[,March,April,May,June],[Footwear,15,000,26,000,31,000,36,000],[Sports gear,71,500,91,000,95,000,91,000],[Apparel,40,500,37,500,32,000,22,000]]
Required:
Prepare a merchandise purchases budget (in units only) for each product for each of the months of March, April, and May.
\table[[KEGGLER'S SUPPLY],[Merchandise Purchases Budget],[,March,April,May],[FOOTWEAR],[Budgeted sales units,20,500,7,540,8,990],[Add: Desired ending inventory],[Next period budgeted sales units,15,000,26,000,31,000],[Ratio of ending inventory to future sales,29%,29%,29%
 Problem 22-5AA (Algo) Merchandising: Preparation of merchandise purchases budgets for three

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