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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 40% of next month's budgeted unit sales. Finished goods inventory on April 1 is 212 units. Prepare a production budget for the months of April, May, and June. Budgeted sales units April 530 May 610 June 560 July 650 RUIZ COMPANY Production Budget April May June Next period budgeted sales units 610 560 650 Ratio of inventory to future sales 40% 40% 40% Total required units Units to produce
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