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. Answer is complete but not entirely correct. May June 540 620 RUIZ CO. Production Budget For April, May, and June April Next month's budgeted sales (units) 580 Ratio of inventory to future sales 25% Budgeted ending inventory (units) 145 Budgeted unit sales for month 500 Required units of available production 645 Budgeted beginning inventory (units) 125 X Units to be produced 520 X 25% 25% 135 580 715 145 570 155 540 695 Tolol lol 135 560