Walker Company prepares monthly budgets. The current budget plans for a September ending inventory of 30,000 units. Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month. Budgeted sales and merchandise purchases for the three most recent months follow.

(1) Prepare the merchandise purchases budget for the months of July, August, and September.
(2) Compute the ratio of ending inventory to the next month’s sales for each budget prepared in part 1.
(3) How many units are budgeted for sale inOctober?

July August . .. Seber Sales (Units) 180,000 315,000 270,000 Purchases (Units) 200,250 308,250 259,500