Exercise 20-3 Manufacturing: Production budget LO P1 Ruiz Co. provides the following sales forecast for the next four months. Sales (units) April May 660 740 June 690 July 780 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 198 units. Prepare a production budget for the months of April, May, and June. Next month's budgeted sales (units) Ratio of inventory to future sales RUIZ CO. Production Budget For April, May, and June Required units of available production Units to be produced April May June 740 690 780 30%
Exercise 20-3 Manufacturing: Production budget LO P1 Ruiz Co. provides the following sales forecast for the next four months. Sales (units) April May 660 740 June 690 July 780 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 198 units. Prepare a production budget for the months of April, May, and June. Next month's budgeted sales (units) Ratio of inventory to future sales RUIZ CO. Production Budget For April, May, and June Required units of available production Units to be produced April May June 740 690 780 30%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 20-3 Manufacturing: Production budget LO P1
Ruiz Co. provides the following sales forecast for the next four months.
Sales (units)
April
660
May June
740 690
July
780
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 198 units.
Prepare a production budget for the months of April, May, and June.
Next month's budgeted sales (units)
Ratio of inventory to future sales
RUIZ CO.
Production Budget
For April, May, and June
Required units of available production
Units to be produced
April
May
June
740
690
780
30%
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