Answer Happy

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 30% of next month's budgeted unit sales. Finished goods inventory on April 1 is 165 units. Prepare a production budget for the months of April, May, and June. Budgeted sales units April 550 Budgeted sales units Add: Beginning inventory units Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Less: Beginning inventory units Units to produce May 630 RUIZ COMPANY Production Budget April June 580 550 630 30% 189 165 July 670 May 63 580 30% June 580 670 30%