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 183 units. Prepare a production budget for the months of April, May, and June. Budgeted sales units. Next period budgeted sales units Ratio of inventory to future sales Total required units April 610 Units to produce May 690 RUIZ COMPANY Production Budget April June 640 690 30% July 730 May 640 30% June 730 30%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ruiz Company...

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 183 units. Prepare a
production budget for the months of April, May, and June.
Budgeted sales units
Next period budgeted sales units
Ratio of inventory to future sales
Total required units
April
610
Units to produce
May
690
RUIZ COMPANY
Production Budget
April
June
640
690
30%
July
730
May
640
30%
June
730
30%
Transcribed Image Text: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 183 units. Prepare a production budget for the months of April, May, and June. Budgeted sales units Next period budgeted sales units Ratio of inventory to future sales Total required units April 610 Units to produce May 690 RUIZ COMPANY Production Budget April June 640 690 30% July 730 May 640 30% June 730 30%
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