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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 20% of next month's budgeted unit sales. Finished goods inventory on April 1 is 120 units. Prepare a production budget for the months of April, May, and June. Budgeted sales units April 600 May 680 June 630 July 720 RUIZ CO. Production Budget April May June Next period budgeted sales units 680 630 720 Ratio of inventory to future sales 20% 20% 20% Total required units Units to produce
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