Q19.1

C 1 Required information Part 1 of 2 Ruiz Co. provides the following sales forecast for the next four months: April Sales (units) 630 May 710 June 660 July 750 eBook 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 189 units. Assume July's budgeted production is 660 units. In addition, each finished unit requires five pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month's production needs. Beginning raw materials inventory for April was 981 pounds. Assume direct materials cost $6 per pound. 101 Hint 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) 710 Ratio of inventory to future sales 30% May 660 June 750 Required units of available production Units to be produced Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the neare whole dollar amount.) RUIZ CO. Direct Materials Budget For April, May, and June April May June Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Total budgeted direct materials cost