Use the following information for the Exercises below.

Ruiz Co. provides the following sales forecast for the next four months:

	April		May		June		July
Sales (units)	550		630		580		670

The company wants to end each month with ending finished goods inventory equal to 30% of next month's forecasted sales. Finished goods inventory on April 1 is 165 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 1,148 pounds. Assume direct materials cost $6 per pound.

Exercise 20-3 Manufacturing: Production budget LO P1

Prepare a production budget for the months of April, May, and June.

Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)

RUIZ CO Production Budget For April, May, and June April May June 630 580 Next month's budgeted sales (units) Ratio of inventory to future sales 670 30% Required units of available production Units to be produced RUIZ co. Direct Materials Budget For April, May, and June May June April Materials needed for production (Ibs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Total budgeted direct materials cost