Question

1. Ruiz Co. provides the following sales forecast for the next four months. April May June...

1.

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

April May June July
Sales (units) 640 720 670 760


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 128 units.

Prepare a production budget for the months of April, May, and June.

RUIZ CO.
Production Budget
For April, May, and June
April May June
Next month's budgeted sales (units) 720 670 760
Ratio of inventory to future sales 20% 20% 20%
Budgeted ending inventory (units) 144 134 152
Budgeted unit sales for month 640 720 670
Required units of available production 784 854 822
Budgeted beginning inventory (units)
Units to be produced
Business   Accounting   
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