Inputs:

• Budgeted beginning inventory (units)
• Budgeted ending inventory (units)
• Budgeted unit sales for month

Ruiz Co. provides the following sales forecast for the next four months.

	April		May		June		July
Sales (units)	510		590		540		630

The company wants to end each month with ending finished goods inventory equal to 40% of next month's forecasted sales. Finished goods inventory on April 1 is 204 units. Prepare a production budget for the months of April, May, and June.

RUIZ CO. Production Budget For April, May, and June April Next month's budgeted sales (units) 590 Ratio of inventory to future sales 40% May June 630 540 Required units of available production Units to be produced