Question

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

Answer 1

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

Planned ending inventory              296            276             312  

Total production required              956          1,016          1,002

- Beginning inventory                    -224          -296            -276  

Units to be produced                     732            720            726