Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ruiz co. provides the following sales forecast for

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

70.2K

Verified Solution

Question

Accounting

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

April May June July
Sales (units) 690 770 720 810

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 276 units. Assume July's budgeted production is 720 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 months production needs. Beginning raw materials inventory for April was 1,083 pounds. Assume direct materials cost $5 per pound.

RUIZ CO.
Direct Materials Budget
For April, May, and June
April May June
Budgeted production (units) 770 720
Materials requirements per unit 40 40 40 lbs.
Materials needed for production (lbs.)
Budgeted ending inventory (lbs.) 690 770 720 lbs.
Total materials requirements (lbs.) 30 lbs.
Beginning inventory (lbs.)
Materials to be purchased (lbs.)
Cost per lb.
Total budgeted direct materials cost

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

Finance
1.2K views

U.S. banking regulations prevent banks from owning major corporations. In other countries, the banking industry is...

Biology
1.2K views

Mumps is a contagious childhood disease. A vaccine has been widely available for several decades now,...

Medical Sciences
1.2K views

. What are the problems that can occur with the quality of blood film?

Psychology
1.2K views

Social Research Methods: Stanford Prison Experiment 1. What is the independent and the dependent variable in...

Accounting
1.2K views

Differential Analysis Report for Sales Promotion Proposal Rocket Shoe Company is planning a one-month campaign for...

Geometry
1.2K views

Rewrite the vector components in using the unit vector form 12 4 12 4

Basic Math
1.2K views

The original photograph shown is 4 inches by 6 inches.a. What transformations can you use...

Calculus
1.2K views

An automobile company is ready to introduce a new line of cars through a national...

Accounting
1.2K views

What should a title examiner look for when reviewing the recorded documents in a...

Accounting
1.2K views

Advanz enterprises has its pharmaceutical product manufacturing affiliate in the USA and its sales affiliate...

Finance
1.2K views

Minion, Inc., has no debt outstanding and a total market value of $211,875. Earnings before...

Accounting
1.2K views

Step 4: Evaluate the Arguments for each Option Weigh the ethical reasons...