The company wants to end each month with ending finished goods inventory equal to 25% of next months forecasted sales. Finished goods inventory on April 1 is 190 units. Assume Julys budgeted production is 540 units. In addition, each finished unit requires five pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next months production needs. Beginning raw materials inventory for April was 663 pounds. Assume direct materials cost $4 per pound.

Required information Use the following information for the Exercises below Ruiz Co. provides the following sales forecast for the next four months April MayJuneJuly 620 Sales (units) 500 580 540 The company wants to end each month with ending finished goods inventory equal to 25% of next month's forecasted sales. Finished goods inventory on April 1 is 190 units. Assume July's budgeted production is 540 units. In addition, each finished unit requires five pounds (Ibs.) of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month's production needs. Beginning raw materials inventory for April was 663 pounds. Assume direct materials cost $4 per pound Exercise 20-3 Manufacturing: Production budget LO P1 Prepare a production budget for the months of April, May, and June RUIZ CO Production Budget For April, May, and June April May June Next month's budgeted sales (units) 580 540 620 Ratio of inventory to future sales 25% Required units of available production Units to be produced RUIZ co Production Budget For April, May, and June April May June 580 540 620 Next month's budgeted sales (units) Ratio of inventory to future sales 25% Budgeted beginning inventory (units) Budgeted ending inventory (units) Budgeted unit sales for month