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Please show work! Thank you! Exercise 20-3 Manufacturing: Production budget LO P1 Ruiz Co. provides the following sales forecast for the next four months. April
Please show work! Thank you!
Exercise 20-3 Manufacturing: Production budget LO P1 Ruiz Co. provides the following sales forecast for the next four months. April 670 May 750 Sales (units) June 700 July 790 The company wants to end each month with ending finished goods inventory equal to 30% of next month's forecasted sales. Finished goods inventory on April 1 is 201 units. Prepare a production budget for the months of April, May, and June. May June 700 790 RUIZ CO. Production Budget For April, May, and June April Next month's budgeted sales (units) 750 Ratio of inventory to future sales 30% Budgeted ending inventory (units) 225 Budgeted unit sales for month 670 Required units of available production 895 Budgeted beginning inventory (units) Units to be produced 30% 30% 210 237 750 700 : 960 937Step by Step Solution
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