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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
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 30% of next month's budgeted unit sales. Finished goods inventory on April 1 is 183 units. Prepare a production budget for the months of April, May, and June. Budgeted sales units April 610 May 690 June 640 July 730 Budgeted sales units RUIZ COMPANY Production Budget April May June 610 690 640 Add: Desired ending inventory Next period budgeted sales units 690 640 730 Ratio of inventory to future sales 30% 30% 30% Desired ending inventory units Total required units Less: Beginning inventory units Units to produce
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