Question
Ruiz Co. provides the following sales forecast for the next four months: April May June July Sales (units) 620 700 650 740 The company wants
Ruiz Co. provides the following sales forecast for the next four months:
April | May | June | July | |||||
Sales (units) | 620 | 700 | 650 | 740 | ||||
|
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 248 units. Assume July's budgeted production is 650 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 months production needs. Beginning raw materials inventory for April was 978 pounds. Assume direct materials cost $5 per pound.
Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)
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