Required information Ruiz Co. provides the following sales forecast for the next four months April...
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Required information Ruiz Co. provides the following sales forecast for the next four months April May Ju July 730 Sales (units) 610 690 640 The company wants to end each month with ending finished goods inventory equal to 20% of next month's forecasted sales. Finished goods inventory on April 1 is 122 units. Assume July's budgeted production is 640 units. In addition, each finished unit requires six pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 20% of next month's production needs. Beginning raw materials inventory for April was 751 pounds. Assume direct materials cost $4 per pound Prepare a production budget for the months of April, May, and June RUIZ CO Production Budget For April, May, and June April May June 690 Next month's budgeted sales (units) Ratio of inventory to future sales 640 730 20% Required units of available production Units to be produced
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