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 in October?
sales unit purchase unit
july 180,000 200,250
August 315,000 308,250
September 270,000 259,500