Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear, 20,500 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 28% of the budgeted sales units for the following month. Budgeted sales units for March, April, May, and June follow. Footwear Sports gear Apparel Budgeted Sales in Units March April May 15,000 26,000 30,500 69,000 89,500 95,000 41,500 38,000 33,000 June 35,000 90,000 23,000 Required: 1. Prepare a merchandise purchases budget (in units only) for each product for each of the months of March, April, and May. Answer is not complete. KEGGLER'S SUPPLY Merchandise Purchases Budget
Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear, 20,500 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 28% of the budgeted sales units for the following month. Budgeted sales units for March, April, May, and June follow. Footwear Sports gear Apparel Budgeted Sales in Units March April May 15,000 26,000 30,500 69,000 89,500 95,000 41,500 38,000 33,000 June 35,000 90,000 23,000 Required: 1. Prepare a merchandise purchases budget (in units only) for each product for each of the months of March, April, and May. Answer is not complete. KEGGLER'S SUPPLY Merchandise Purchases Budget
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Question
Do not provide answer in image format
Transcribed Image Text:Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear, 20,500 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 28% 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.
Budgeted Sales in Units
May
April
26,000 30,500
SPORTS GEAR
March
June
15,000
35,000
69,000
89,500 95,000
90,000
41,500 38,000 33,000 23,000
Budgeted sales units
Add: Desired ending inventory
Next period budgeted sales units
Ratio of ending inventory to future sales
Desired ending inventory
Total required units
Less: Beginning inventory units
Units to purchase
APPAREL
Budgeted sales units
Add: Desired ending inventory
Next period budgeted sales units
Ratio of ending inventory to future sales
Desired ending inventory
Total required units
Less: Beginning inventory units
Units to purchase
Merchandise Purchases Budget
Budgeted sales units
Add: Desired ending inventory
Next period budgeted sales units
Ratio of ending inventory to future sales
Desired ending inventory
Total required units
Less: Beginning inventory units
Units to purchase
Answer is not complete.
KEGGLER'S SUPPLY
March
15,000
26,000
28%
7,280
22,280
20,500
1,780
69,000
85,900 X
28%
24,052 X
93,052
69,000 X
24,052
41,500
38,000
28%
3,500
45,000
45,000x
0x
April
26,000
30,500✔
28%
8,540
34,540
89,500
95,000
28%
26,600
116,100
89,500 X
26,600 X
38,000
33,000
28%
9,240
47,240
47,240 x
0x
May
30,500
35,000
28%
9,800
40,300
(8,540)
31,760
95,000
90,000
28%
25,200
120,200
95,000 X
25,200 X
33,000
23,000
28%
6,440
39,440
39,440
0X
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education