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1. Need help fixing Ruiz Company provides the following budgeted sales for the next four months. The company wants to end each month with ending
1. Need help fixing
Ruiz Company provides the following budgeted sales for the next four months. The company wants to end each month with ending finished goods inventory equal to 25% of next month's budgeted unit sales. Finished goods inventory on April 1 is 125 units. Prepare a production budget for the months of April, May, and June. July April see May 580 June 540 620 Budgeted sales units & Answer is complete but not entirely correct. RUIZ COMPANY May June 540 X 620 Production Budget April Budgeted sales units 580 Add: Desired ending inventory Next period budgeted sales units 580 Ratio of inventory to future sales 25% 500 Desired ending inventory units 540 620 25 % 25% 25% 580 540 Answer is complete but not entirely correct. RUIZ COMPANY Production Budget April May June 580 % 540 620 X 580 540 620 25% 25% 25% Budgeted sales units Add: Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Less: Beginning inventory units Units to produce 500 580 540 645 715 895 125 145 135 520 570 500
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