Question :The budget plans for a Sept ending inventory of 31,500 units. Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month.
Sales (unit) Purchase Units
July 170,000 188,000
Aug 290,000 287,000
Sept 270,000 261,000
Prepare merchandise purchase budget for the month of JulY,Aug and Sept
Budgeted ending inventory units
required units of available inventory
units to be purchased
In sept we have a budgeted ending inventory units of 31,500