Homework Help is Here – Start Your Trial Now!
Business
Accounting
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

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 1E: The sales department of Macro Manufacturing Co. has forecast sales for its single product to be...
See similar textbooks
icon
Related questions
icon
Concept explainers
Question
Do not provide answer in image format
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
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
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Budgeting
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS