Required information Ruiz Co. provides the following sales forecast for the next
ID: 2519913 • Letter: R
Question
Required information
Ruiz Co. provides the following sales forecast for the next four months:
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 264 units. Assume July's budgeted production is 690 units. In addition, each finished unit requires five pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month’s production needs. Beginning raw materials inventory for April was 1,038 pounds. Assume direct materials cost $4 per pound.
Explanation / Answer
RUIZ CO. Production Budget For April,May and June April May June Next Month's budgeted sales(units) 740 690 780 Ratio of inventory to future sales 40% 40% 40% Budgeted Ending Inventory (Units) 296 276 312 Sales (units) 660 740 690 Required unts of available production 956 1,016 1,002 Beginning Inventory (Units) 264 296 276 Units to be produced 692 720 726
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.