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A company provides the following budgeted sales for the next four months. The company wants to end each month with ending finished goods inventory equal
A 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 20% of next month's budgeted unit sales. Finished goods inventory on April 1 is 112 units. Prepare a production budget for the months of April, May, and June. Budgeted sales units Next period budgeted sales units Ratio of inventory to future sales Total required units April 560 Units to produce May 640 RUIZ COMPANY Production Budget April June 590 640 20% July 680 May 590 20% June 680 20%
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