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Ruiz Company provides the following budgeted sales for the next four months. The company wants to end each month with ending finished goods inventory equal
Ruiz Company provides the following budgeted sales for the next four months. The company wants to end each month with ending finished goods inventory equal to 20% of next month's budgeted unit sales. Finished goods Inventory on April 1 is 128 units. Prepare a production budget for the months of April, May, and June. Budgeted sales units April 640 May 720 June July 670 760 RUIZ COMPANY Production Budget April May June Next period budgeted sales units 720 670 760 Ratio of inventory to future sales 20% 20% 20% Total required units Units to produce Ruiz Company provides the following budgeted sales for the next four months. The company wants to end each mont finished goods inventory equal to 20% of next month's budgeted unit sales. Finished goods inventory on April 1 is 128 production budget for the months of April, May, and June. April Budgeted sales units 640 May 720 June July 670 760 RUIZ COMPANY Production Budget April May June Next period budgeted sales units 720 670 760 Ratio of inventory to future sales 20% 20% 20% Total required units Units to produce
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