Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear, 18,500 units; sports gear, 80,000 units; and apparel, 48,500 units Management believes each of these inventories is too high and begins a new policy that ending inventory in any month should equal 30% 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 Total required units Add: Desired ending inventory Next period budgeted sales units Ratio of ending inventory to future sales Units to purchase SPORTS GEAR Total required units Add: Desired ending inventory Next period budgeted sales units Ratio of ending inventory to future sales Units to purchase Budgeted Sales in Units March April May 15,000 25,500 32,500 June 34,500 70,500 88,500 95.000 90,000 41,500 39,000 33,500 22,000 APPAREL KEGGLER'S SUPPLY Merchandise Purchases Budget Total required units Add Desired ending inventory Next period budgeted sales units Ratio of ending inventory to future sales Units to purchase March April 0 May

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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.