Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear, 19.500 units, sports gear, 81,000 units and apparel, 49,000 units. Management believes each of these inventories is too high and begins a new policy that ending inventory in any month should equal 31% of the budgeted sales units for the following month. Budgeted sales units for March. April, May, and June follow. Footwear Sports gear Apparel Required: 1. Prepare a merchandise purchases budget (in units only) for each product for each of the months of March, April, and May. FOOTWEAR Budgeted Sales in Units March April May June 14,500 25,500 31,000 34,000 70,000 89,000 94,500 91,000 40,500 38,500 33,500 22,000 Total required units Units to purchase Add: Desired ending invertory Next period budgeted sales units Ratio of ending inventory to future sales SPORTS GEAR KEGGLER'S SUPPLY Merchandise Purchases Budget March Add: Desired ending inventory Ned period budgeted sales units Rato of ending inventory to future sales April May
Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear, 19.500 units, sports gear, 81,000 units and apparel, 49,000 units. Management believes each of these inventories is too high and begins a new policy that ending inventory in any month should equal 31% of the budgeted sales units for the following month. Budgeted sales units for March. April, May, and June follow. Footwear Sports gear Apparel Required: 1. Prepare a merchandise purchases budget (in units only) for each product for each of the months of March, April, and May. FOOTWEAR Budgeted Sales in Units March April May June 14,500 25,500 31,000 34,000 70,000 89,000 94,500 91,000 40,500 38,500 33,500 22,000 Total required units Units to purchase Add: Desired ending invertory Next period budgeted sales units Ratio of ending inventory to future sales SPORTS GEAR KEGGLER'S SUPPLY Merchandise Purchases Budget March Add: Desired ending inventory Ned period budgeted sales units Rato of ending inventory to future sales April May
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear, 19.500 units, sports gear,
81,000 units, and apparel, 49.000 units. Management believes each of these inventories is too high and begins a new policy that
ending inventory in any month should equal 31% of the budgeted sales units for the following month. Budgeted sales units for March.
April May, and June follow.
Footwear
Sports gear
Apparel
FOOTWEAR
Required:
1. Prepare a merchandise purchases budget (in units only) for each product for each of the months of March, April, and May.
Total required units
Add: Desired ending inventory
Next period budgeted sales units
Ratio of ending inventory to future sales
Units to purchase
SPORTS GEAR
Budgeted Sales in Units
March April May
14,500 25,500 31,000
70,000 89,000 94,500
40,500
38,500 33,500
Add: Desired ending inventory
Neod period budgeted sales units
Ratio of ending inventory to future sales
Total required units
Units to purchase
APPAREL
KEGGLER'S SUPPLY
Merchandise Purchases Budget
March
Add Desired ending invertory
Next period budgeted sales units
Ratio of ending inventory to ture sales
Total required units
June
34,000
91,000
22,000
Units to purchase
April
0
May
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