Ruiz Co. provides the following sales forecast for the next four months: ...
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Accounting
Ruiz Co. provides the following sales forecast for the next four months:
| April | May | June | July | |||||
| Sales (units) | 520 | 600 | 550 | 640 | ||||
The company wants to end each month with ending finished goods inventory equal to 30% of next month's forecasted sales. Finished goods inventory on April 1 is 156 units. Assume July's budgeted production is 550 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 30% of next months production needs. Beginning raw materials inventory for April was 979 pounds. Assume direct materials cost $4 per pound.
Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)
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