Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. can someone tell me if this is correct? required

Can someone tell me if this is correct? Required information Ruiz Co. provides the...

50.1K

Verified Solution

Question

Accounting

imageCan someone tell me if this is correct?

Required information Ruiz Co. provides the following sales forecast for the next four months: April 500 May 580 June 540 July 620 Sales (units) The company wants to end each month with ending finished goods inventory equal to 25% of next month's forecasted sales. Finished goods inventory on April 1 is 190 units. Assume July's budgeted production is 540 units. In addition, each finished unit requires five pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month's production needs. Beginning raw materials inventory for April was 663 pounds. Assume direct materials cost $4 per pound. Prepare a production budget for the months of April, May, and June. May RUIZ CO. Production Budget For April, May, and June April Next month's budgeted sales (units) Ratio of inventory to future sales 25% Budgeted ending inventory (units) 145 Budgeted beginning inventory (units) 190 Required units of available production 335 580 540 25% 135 145 280 June 620 25% 155 135 290 Units to be produced 455 570 560

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students