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 20% of next month's budgeted unit sales. Finished goods inventory on April 1 is 114 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 570 Units to produce May 650 RUIZ COMPANY Production Budget April June 600 650 20% July 690 May 600 20% June 690 20%

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 20% of next month's budgeted unit sales. Finished goods inventory on April 1 is 114 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 570 Units to produce May 650 RUIZ COMPANY Production Budget April June 600 650 20% July 690 May 600 20% June 690 20%

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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