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katrin [286]
3 years ago
5

Ruiz co. provides the following sales forecast for the next four mounths. The company wants to end each month with ending finish

ed goods inventory equal to 40% of next months forecasted sales. Finished goods inventory on april 1 is 224 units. Prepare a production budget for the months of april may june
Business
1 answer:
photoshop1234 [79]3 years ago
3 0

Answer:

Some information is missing, estimated sales:

  • April = 660
  • May = 740
  • June = 690
  • July = 780

                                  Ruiz Co.

                          Production Budget

            For the Months of April, May and June

                                                       April            May           June

Forecasted sales                            660            740            690

<u>Planned ending inventory              296            276             312  </u>

Total production required              956          1,016          1,002

<u>- Beginning inventory                    -224          -296            -276  </u>

Units to be produced                     732            720            726

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