Required information Us he following information for the Exercises below Ruiz Co

Question

Required information Us he following information for the Exercises below Ruiz Co. provides the following sales forecast for the next four months April Ma Sales (units) June Jul 680 650 730 77e The company wants to end each month with ending finished goods inventory equal to 40% of next month's forecasted sales. Finished goods inventory on April 1 is 260 units. Assume July's budgeted production is 680 units. In addition, each finished unit requires six pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 40% of next month's production needs. Beginning raw materials inventory for April was 1637 pounds. Assume direct materials cost $5 per pound. ercise 7.4 Manufacturing: Direct materials budget LO P1 pare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the rest whole dollar amount.)

Explanation / Answer

Production Budget

Raw materials budget

April May June Sales 650 730 680 Add: Ending inventory of finished goods 292 272 308 Less: Begining inventory of finished goods - 260 - 292 - 272 Production units 682 710 716

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