Exercise 7-3 (Static) 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 25% of next month's budgeted unit sales Finished goods inventory on April 1 is 125 units. Prepare a production budget for the months of April May, and June. May June July Budgeted sales units Apr 500 500 540 620 finished goods inventory equal to 25% of next month's budgeted unit sales. Finished goods inventory on production budget for the months of April, May, and June Budgeted sales units April 500 May 580 June 540 July 620 RUIZ COMPANY Production Budget April May June 620 Next period budgeted sales units Ratio of inventory to future sales 580 25% 540 25% 25% Total required units Units to produce