Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 30% of next month's forecasted sales. Finished goods inventory on April 1 is 156 units. Assume July's budgeted production is 550 units. In addition, each finished unit requires six 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 979 pounds. Assume direct materials cost $4 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions