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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 months budgeted unit sales. Finished goods inventory on April 1 is 136 units. Prepare a production budget for the months of April, May, and June.
April | May | June | July | |
---|---|---|---|---|
Budgeted sales units | 680 | 760 | 710 | 800 |
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 136 units. Prepare a production budget for the months of April, May, and June. April 680 May 760 June 710 July 800 Budgeted sales units RUIZ COMPANY Production Budget April May June 760 710 800 20% 20% 20% 152 142 1601 Next period budgeted sales units Ratio of inventory to future sales Budgeted beginning inventory units Total required units Less: Beginning inventory units Units to produce 680 760 710 870 (136) 902 969 750 728
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