Exercise 07-3 Manufacturing: Production budget LO P1 Ruiz Co. provides the following sales forecast for the next four months. April 500 Sales (units) May 580 June 540 July 620 The company wants to end each month with ending finished goods inventory equal to 25% of next month's forecasted sales. Finished goods inventory on April 1 is 190 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) 580 540 620 Ratio of inventory to future sales 25% Required units of available production Units to be produced