7-4) Required information

Use the following information for the Exercises below.

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 20% of next month's forecasted sales. Finished goods inventory on April 1 is 138 units. Assume July's budgeted production is 720 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 1,271 pounds. Assume direct materials cost $6 per pound.

Exercise 7-4 Manufacturing: Direct materials budget LO P1

Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)

/////////////////////////////////////////////////////////////////////////////////////////////////////////////

7-3) Required information

Use the following information for the Exercises below.

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

	April		May		June		July
Sales (units)	650		730		680		770

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 130 units. Assume July's budgeted production is 680 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 20% of next months production needs. Beginning raw materials inventory for April was 799 pounds. Assume direct materials cost $4 per pound.

Exercise 7-3 Manufacturing: Production budget LO P1

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