### Ruiz Company Production Budget OverviewRuiz Company plans its production based on projected sales and inventory requirements for the upcoming months. This budget outlines the strategy for meeting sales targets while maintaining optimal inventory levels.**Budgeted Sales Units (Next Four Months)**- April: 680 units- May: 760 units- June: 710 units- July: 800 unitsThe company aims to end each month with a finished goods inventory equal to 30% of the following month's budgeted sales units. As of April 1, the starting finished goods inventory is 204 units.**Production Budget Calculation (For April, May, and June):**#### April:- **Next Period’s Budgeted Sales Units (May):** 760 units- **Ratio of Inventory to Future Sales:** 30%- **Computation Steps:** - Desired ending inventory for April = 30% of May's sales = 0.30 * 760 = 228 units - Total required units for April = April sales + Desired ending inventory - Beginning inventory - Units to produce = Total required units - April’s beginning inventory#### May:- **Next Period’s Budgeted Sales Units (June):** 710 units- **Ratio of Inventory to Future Sales:** 30%- **Computation Steps:** - Desired ending inventory for May = 30% of June's sales = 0.30 * 710 = 213 units - Total required units for May = May sales + Desired ending inventory - Ending inventory of April - Units to produce = Total required units - Ending inventory from April#### June:- **Next Period’s Budgeted Sales Units (July):** 800 units- **Ratio of Inventory to Future Sales:** 30%- **Computation Steps:** - Desired ending inventory for June = 30% of July's sales = 0.30 * 800 = 240 units - Total required units for June = June sales + Desired ending inventory - Ending inventory of May - Units to produce = Total required units - Ending inventory from MayThis strategic approach ensures Ruiz Company can meet sales forecasts while efficiently managing inventory levels to reduce carrying costs and maximize efficiency.

Given inventory required = 30% of budgeted next month sales units. Units required = Current sales +…

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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please fill in this chart
Zahn Company budgets sales of 300 units in May and 640 units in June. Each month's ending inventory should be 25% of the next month's sales. The April 30 ending finished goods inventory is 75 units. Prepare the production budget for May. ZAHN COMPANY Production Budget Add: Desired ending inventory Desired ending inventory units Total required units Units to produce May
Fritz, Murphy & Dollar, LLC is preparing its direct labor budget for June. Projections for the month are that 36,000 units are to be produced and 35,500 units are expected to be sold. Direct labor time is three hours per unit. If the labor cost per hour is $18, what is the total budgeted direct labor cost for June?
Walnut Company has forecast sales for the next three months as follows: July 4,800 units, August 6,300 units, and September 8,300 units. Walnut's ending finished goods inventory policy is 45% of the next month's sales. July 1 inventory is projected to be 2,100 units. Selling and administrative costs are budgeted to be $24,000 per month plus $6 per unit sold. What are the budgeted selling and administrative expenses for July? Multiple Choice $58,410 $33,210 $52,800 $48,300
Yogi Company expects to sell 1,700 units of finished product in January and 1,850 units in February. The company has 170 units on hand on January 1 and desires to have an ending inventory equal to 40% of the next month's sales. March sales are expected to be 1,950 units. Prepare Yogi's production budget for January and February. C Select the labels, enter the amounts and prepare the production budget for January. Then, prepare the production budget for February. Yogi Company Production Budget Two Months Ended January 31 and February, 28 A January February Plus: Total units needed Less: Budgeted units to be produced # * 40 6 & 7 4+ 8 144 9 6 11 home
Karan
Cypress Inc. has the following budgeted sales for the next quarter.Month: 1 2 3Units: 10,000 11,000 12,000Inventory of finished goods on hand at the beginning of the quarter is 7,000 units. The company desires to maintain ending inventory equal to beginning inventory plus 5,000 units every month.Calculate the total quantity to be produced during the quarter.
The Model Company is to begin operations in April. It has budgeted April sales of $70,000, May sales of $74,000, June sales of $80,000, July sales of $82,000, and August sales of $78,000. Note that 10% of each month's sales is expected to represent cash sales; 75% of the balance is expected to be collected in the month following the sale, 17% the second month, 6% the third month, and the balance is expected to be uncollectible. What is the amount of cash to be collected in the month of July?
Lexi Company budgets unit sales of 1,200,000 in April, 1,290,000 in May, 470,000 in June, and 1,520,000 in July. Beginning inventory on April 1 is 360,000 units, and the company wants to have 30% of next month’s unit sales in inventory at the end of each month. The merchandise cost per unit is $0.50. Prepare a merchandise purchases budget for the months of April, May, and June.
Scora, Inc., is preparing its master budget for the quarter ending March 31. It sells a single product for $60 per unit. Budgeted sales for the next three months follow. January February March Sales in units 1,500 2,900 1,300 Prepare a sales budget for the months of January, February, and March.
i need the answer quickly
Yeah Company expects to sell 1,700 units of finished product in January and 2,050 units in February. The company has 260 units on hand on January 1 and desires to have an ending inventory equal to 40% o the next month's sales. March sales are expected to be 2,120 units. Prepare Yeah's production budget for January and February...