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Lexi Company forecasts unit sales of 1,680,000 in April, 1.290,000 in May. 520,000 in June, and 1710,000 in July. Beginning i

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Merchandise purchases budget

April may June
Next month budgeted sales 1290000 520000 1710000
Ratio of inventory to future sales 40% 40% 40%
Desired ending inventory 516000 208000 684000
Budgeted sales 1680000 1290000 520000
Total 2196000 1498000 1204000
Less: Beginning inventory -230000 -516000 -208000
Required purchase 1966000 982000 996000
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