Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. required information ruiz co. provides the followi

Required information Ruiz Co. provides the following sales forecast for the next four months: April...

60.1K

Verified Solution

Question

Accounting

image
Required information Ruiz Co. provides the following sales forecast for the next four months: April ay 590 June July Sales (units) 510 540 630 The company wants to end each month with ending finished goods inventory equal to 40% of next month's forecasted sales. Finished goods inventory on April 1 is 204 units. Assume July's budgeted production is 540 units. In addition, each finished unit requires four 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 434 pounds. Assume direct materials cost $5 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 630 Next month's budgeted sales (units) 590 540 Ratio of inventory to future sales 40% Required units of available production Units to be produced

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