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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 102 units. Prepare a production budget for the months of April, May, and June. Budgeted sales units April 510 May 590 June 540 July 638 RUIZ COMPANY Production Budget April May June Next period budgeted sales units 590 540 630 Ratio of inventory to future sales 20% 20% 20% Total required units Units to produce
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