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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 30% of next month's forecasted sales. Finished goods inventory on April 1 is 165 units. Assume July's budgeted production is 580 units. In addition, each finished unit requires five pounds (Ibs.) 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 861 pounds. Assume direct materials cost $4 per pound. Prepare a production budget for the months of April, May, and June
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