The company wants to end each month with ending finished goods inventory equal to 40% of next month's forecasted sales. Finished goods inventory on April 1 is 220 units. Assume July's budgeted production is 580 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 40% of next months production needs. Beginning raw materials inventory for April was 1,164 pounds. Assume direct materials cost $6 per pound.?

Required information Ruiz Co. provides the following sales forecast for the next four months: April May June July 670 Sales (units) 550 630 580 The company wants to end each month with ending finished goods inventory equal to 40% of next month's forecasted sales. Finished goods inventory on Apri 1 is 220 units. Assume July's budgeted production is 580 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 40% of next month's production needs. Beginning raw materials inventory for April was 1,164 pounds. Assume direct materials cost $6 per pound 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) Ratio of inventory to future sales 630 40% 580 670 udgeted ending inventory (units) udgeted unit sales for month 630 Required units of available production udgeted beginning inventory (units) 220 Units to be produced