Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 10% ofbudgeted unit sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. Beginninginventory on July 1 is 20,000 units. The company budgets sales of 210,000 units in October. The merchandise cost per unit is $3.Budgeted sales unitsJuly200,000September280,000Units to purchase212,000 316,000273,000Prepare the merchandise purchases budgets for the months of July, August, and September.Next period budgeted sales unitsRatio of inventory to future salesTotal required unitsUnits to purchaseCost per unitCost of merchandise purchasesAugust320,000WALKER COMPANYMerchandise Purchases BudgetJuly0August10September0

Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 10% of budgeted unit sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. Beginnis Inventory on July 1 is 20,000 units. The company budgets sales of 210,000 units in October. The merchandise cost per unit is $3. Next period budgeted sales units Ratio of inventory to future sales Total required units July 200,000 212,000 Budgeted sales units Units to purchase Prepare the merchandise purchases budgets for the months of July, August, and September. Units to purchase Cost per unit Cost of merchandise purchases August 320,000 316,000 September 280,000 273,000 WALKER COMPANY Merchandise Purchases Budget July 0 August 0 September 0

Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 10% of budgeted unit sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. Beginnis Inventory on July 1 is 20,000 units. The company budgets sales of 210,000 units in October. The merchandise cost per unit is $3. Next period budgeted sales units Ratio of inventory to future sales Total required units July 200,000 212,000 Budgeted sales units Units to purchase Prepare the merchandise purchases budgets for the months of July, August, and September. Units to purchase Cost per unit Cost of merchandise purchases August 320,000 316,000 September 280,000 273,000 WALKER COMPANY Merchandise Purchases Budget July 0 August 0 September 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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