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 25% of next month's budgeted unit sales. Finished goods inventory on April 1 is 125 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 May 500 580 Units to produce June 540 RUIZ COMPANY Production Budget April 580 25% July 620 May 540 25% June 620 25%

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 25% of next month's budgeted unit sales. Finished goods inventory on April 1 is 125 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 May 500 580 Units to produce June 540 RUIZ COMPANY Production Budget April 580 25% July 620 May 540 25% June 620 25%

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...

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