Exercise 20-3 (Algo) Manufacturing: Production budget LO P1 Ruiz 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 30% of next month's budgeted unit sales. Finished goods inventory on April 1 is 165 units. Prepare a production budget for the months of April, May, and June. Budgeted sales units April 550 May 630 June 580 July 670 RUIZ COMPANY Production Budget April May June 630 580 670 Next period budgeted sales units Ratio of inventory to future sales 30% 30% 30% Total required units Units to produce Exercise 20-3 (Algo) Manufacturing: Production budget LO P1 Ruiz 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 30% of next month's budgeted unit sales. Finished goods inventory on April 1 is 165 units. Prepare a production budget for the months of April, May, and June. June Budgeted sales units April 550 May 630 July 670 580 RUIZ COMPANY Production Budget April May June 630 580 670 30% 30% 30% Budgeted beginning inventory units Budgeted sales units Desired ending inventory units Units to produce Exercise 20-3 (Algo) Manufacturing: Production budget LO P1 Ruiz 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 30% of next month's budgeted unit sales. Finished goods inventory on April 1 is 165 units. Prepare a production budget for the months of April, May, and June. Budgeted sales units April 550 May 630 June 580 July 670 RUIZ COMPANY Production Budget April May June 630 580 670 30% 30% 30% Add: Beginning inventory units Add: Desired ending inventory Less: Beginning inventory units Less: Desired ending inventory Exercise 20-3 (Algo) Manufacturing: Production budget LO P1 Ruiz 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 30% of next month's budgeted unit sales. Finished goods inventory on April 1 is 165 units. Prepare a production budget for the months of April, May, and June. April 550 Budgeted sales units May 630 June 580 July 670 RUIZ COMPANY Production Budget April May June 630 580 Next period budgeted sales units Ratio of inventory to future sales 670 30% 30% 30% Budgeted beginning inventory units Budgeted sales units Desired ending inventory units Exercise 20-3 (Algo) Manufacturing: Production budget LO P1 Ruiz 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 30% of next month's budgeted unit sales. Finished goods inventory on April 1 is 165 units. Prepare a production budget for the months of April, May, and June. Budgeted sales units April 550 May 630 June 580 July 670 RUIZ COMPANY Production Budget April May June 630 580 670 Add: Beginning inventory units Add: Desired ending inventory Less: Beginning inventory units Less: Desired ending inventory TOL requireu urnes 30% 30% 30% Units to produce
