Walker Company prepares monthly budgets. The current budget plans for a Septembe

Question

Walker Company prepares monthly budgets. The current budget plans for a September ending inventory of 19,000 units. Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month. Budgeted sales and merchandise purchases for the three most recent months follow.

1. Prepare the company's merchandise purchases budget for the months of July, August and September.

Walker Company prepares monthly budgets. The current budget plans for a September ending inventory of 19,000 units. Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month. Budgeted sales and merchandise purchases for the three most recent months follow.

Explanation / Answer

Purchase budget July Aug Sept units to be consumed 170000 330000 290000 Add : closing stock 33000 29000 19000 Less : Opening stock 17000 33000 29000 Units to be purchased 186000 326000 280000 As the units to be consumed is not given . I have taken sales units as consumed units.

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