Question
Ruiz Co. provides the following sales forecast for the next four months: AprilMayJuneJuly Sales (units) 550630580670 The company wants to end each month with ending
Ruiz Co. provides the following sales forecast for the next four months:
AprilMayJuneJuly
Sales (units) 550630580670
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 four 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 689 pounds. Assume direct materials cost $5 per pound.
Make a materials budget for April, May, and June.(Round your intermediate calculations and final answers to the nearest whole dollar amount.)
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