Exercise 20-3 Manufacturing: Production budget LO P1 Ruiz Co. provides the following sales forecast for the next four months. Sales (units) April 500 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 30 Ratio of inventory to future sales 25% 25% 25% Budgeted ending inventory (units) 145 135 155 Budgeted unit sales for month 645 x 715 x 695 Required units of available production 790 850 850 Budgeted beginning inventory (units) 190 145 135 Units to be produced 455 570 560 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted