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