Answer:
Preparation of merchandise purchases budgets for the months of July, August, and September is shown below:-
Explanation:
Walker Company
Merchandises Purchase Budget
For July, August , September
July August September
Budgeted ending inventory units 47,250 40,500 30,000
Add: Budgeted unit sales for month 180,000 315,000 270,000
Required units available inventory 227,250 355,500 300,000
Less: Beginning inventory units 27,000 47,250 40,500
Units to be purchased 200,250 308,250 259,500
Working Note 1
September required units
Ending inventory 30,000
Add: Budgeted sales 270,000
Total required in September 300,000
Working Note 2
September Beginning inventory
Total required 300,000
Less: Budgeted purchases 259,500
September beginning inventory 40,500
Working Note 3
Beginning inventory of September = Ending inventory of August
Working Note 4
August required units
Ending inventory 40,500
Add: Budgeted sales 315,000
Total required in August 355,500
Working Note 5
August beginning inventory
Total required 355,500
Less: Budgeted purchases 308,250
August beginning inventory 47,250
Working Note 6
Beginning inventory of August = Ending inventory of July
Working Note 7
July required units
Ending inventory 47,250
Add: Budgeted sales 180,000
Total required in July 227,250
Working Note 8
July beginning inventory
Total required 227,250
Less: Budgeted purchases 200,250
July beginning inventory 27,000
