0 Required information Use the following information for the Exercises below. Ru
ID: 2516167 • Letter: 0
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0 Required information Use the following information for the Exercises below. Ruiz Co. provides the following sales forecast for the next four months: April May June July 610 690 640 730 Sales (units) Th e company wants to e sales. Finished goods inventory on April 1 is 183 units. Assume July's budgeted production is 640 units. In addition, each nd each month with ending finished goods inventory equal to 30% of next month's forecasted finished unit inventory equal to 20% of next month's production needs. Beginning raw materials inventory for April w Assume direct materials cost $5 per pound t requires six pounds (ibs.) of raw materials and the company wants to end each month with raw materials as 761 pounds. Exercise 20-4 Manufacturing: Direct materials budget LO P Prepare a direct materials budget for Apri, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount) RUIZ CO Direct Materials Budget For April, May, and June April May June Budgeted production (units)Explanation / Answer
PRODUCTION BUDGET April May June QUARTER July Budgeted Sales Units 610 690 640 1,940 730 Add: Desired Ending Finished inventory 207 192 219 219 Total Needs 817 882 859 2,159 Less: Beginning Finished Inventory 183 207 192 183 Required Production in units 634 675 667 1,976 RAW MATERIAL PURCHASE BUDGET April May June QUARTER July Budgeted Production units 634 675 667 1,976 640 Raw material required per unit 6 6 6 6 6 Ttotal Production needs 3,804 4,050 4,002 11,856 3,840 Add: Desired Ending Inventory 810 800 768 768 Total needs 4,614 4,850 4,770 12,624 Less: Beginning Inventory 761 810 800 761 Purchase Units 3,853 4,040 3,970 11,863 Cost price per unit 5.00 5.00 5.00 5.00 Budgeted Purchase in $ 19,265 20,202 19,850 59,315
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