Question

Keggler's Supply is a merchandiser of three different products. The company's February 28 inventories are footwear 20,500 units; sports equipment. 80,000 units and apparel, 49,500 units. Management believes each of these inventories is too high. As a result, a new policy dictates that ending Inventory in any month should equal 30% of the expected unit sales for the following month. Expected sales in units for March April May, and June Follow March 14.000 69.500 42,0 April 27.00 .000 18,500 May 1,5 95,500 2,500 June 34,00 90,089 23.ee Sports equipment Required: 1. Prepare a merchandise purchases budget in units) for each product for each of the months of March April, and May. KEGGLER'S SUPPLY Merchandise Purchases Budget For March April, and May March FOOTWEAR Budgcted sales for next month Ratio ofending inventory to future is April Required units ut te merchand B ed anches

Answer 1

April May KEGGLER'S SUPPLY Merchandise Purchases Budget For March, April, and May March FootWear Budgeted sales for next month 27000 Ratio of ending inventory to future sales 30% Budgeted ending inventory 8100 Budgeted units sales for month 14000 Required units of available merchandise 22100 Actual (or eatimated) Beginning inventory 20500 Budgeted Purchases 1600 SPORTS EQUIPMENT Budgeted sales for next month 88000 Ratio of ending inventory to future sales 30% Budgeted ending inventory 26400 Budgeted units sales for month 69500 Required units of available merchandise 95900 Actual (or eatimated) Beginning inventory 80000 Budgeted Purchases 15900 31500 30% 9450 27000 36450 8100 28350 34000 30% 10200 31500 41700 9450 32250 95500 30% 28650 88000 116650 26400 90250 90000 30% 27000 95500 122500 28650 93850

APPAREL Budgeted sales for next month Ratio of ending inventory to future sales Budgeted ending inventory Budgeted units sales for month Required units of available merchandise Actual (or eatimated) Beginning inventory Budgeted Purchases 38500 30% 11550 42000 53550 49500 4050 325001 30% 9750 38500 48250 11550 36700 23000 30% 6900 32500 39400 9750 29650