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Ruiz Co. provides the following sales forecast for the next four months. The company wants to end each month with ending finished goods inventory equal
Ruiz Co. provides the following sales forecast for the next four months.
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 100 units. Prepare a production budget for the months of April, May, and June.
Ruiz Co. provides the following sales forecast for the next four months. April 500 Sales (units) May 580 June 530 July 620 The company wants to end each month with ending finished goods inventory equal to 20% of next month's forecasted sales. Finishe goods inventory on April 1 is 100 units. Prepare a production budget for the months of April, May, and June. May June 530 620 RUIZ CO. Production Budget For April, May, and June April Next month's budgeted sales (units) 580 Ratio of inventory to future sales 20% Budgeted ending inventory (units) Budgeted unit sales for month Required units of available production Budgeted beginning inventory (units) Units to be producedStep by Step Solution
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