Question
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 195 units. Prepare a production budget for the months of April, May, and June. Budgeted sales units April 650 May 730 June July 680 770 Budgeted sales units RUIZ COMPANY Production Budget April May June 650 730 680 Add: Desired ending inventory Next period budgeted sales units 730 680 770 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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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappett
23rd edition
1259536351, 978-1259536359
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