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

	April		May		June		July
Sales (units)	520		600		550		640

The company wants to end each month with ending finished goods inventory equal to 20% of next month's forecasted sales. Finished goods inventory on April 1 is 104 units. Assume July's budgeted production is 550 units. In addition, each finished unit requires four pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 40% of next months production needs. Beginning raw materials inventory for April was 858 pounds. Assume direct materials cost $4 per pound.

Prepare a production budget for the months of April, May, and June.

RUIZ CO Production Budget For April, May, and June May April June 600 20% 640 Next month's budgeted sales (units) Ratio of inventory to future sales 550 Required units of available production Units to be produced