Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 15% ofbudgeted unit sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. Beginninginventory on July1 is 31,500 units. The company budgets sales of 190.000 units in October. The merchandise cost per unit is $2.Budgeted sales unitsunits to purchaseSuly210,000228,000330, 000324,000September290,000275,000Prepare the merchandise purchases budgets for the months of July, August, and SeptemberWALKER COMPANYMerchandise Purchases BudgetJulyAugustSeptemberNext period budgeted sales unitsRatio of inventory to future salesTotal required unitsUnits to purchaseCost per unitCost of merchandise purchases

The purchase budget is prepared by the management to identify the estimated units to be purchased.…

Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 15% of budgeted unit sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. Beginning inventory on July 1 is 31,500 units. The company budgets sales of 190,000 units in October. The merchandise cost per unit is $2. July 210,000 228,000 September Budgeted sales units units to purchase August 330,000 324,000 290,000 275,000 Prepare the merchandise purchases budgets for the months of July, August, and September WALKER COMPANY Merchandise Purchases Budget July August September Next period budgeted sales units Ratio of inventory to future sales Total required units Units to purchase Cost per unit Cost of merchandise purchases

Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 15% of budgeted unit sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. Beginning inventory on July 1 is 31,500 units. The company budgets sales of 190,000 units in October. The merchandise cost per unit is $2. July 210,000 228,000 September Budgeted sales units units to purchase August 330,000 324,000 290,000 275,000 Prepare the merchandise purchases budgets for the months of July, August, and September WALKER COMPANY Merchandise Purchases Budget July August September Next period budgeted sales units Ratio of inventory to future sales Total required units Units to purchase Cost per unit Cost of merchandise purchases

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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