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Firefox File Edit View History Bookmarks Tools Window Help e 25%. Wed 3:26 PM Atika Ishtiaq a E Home | Chegg.com https://newconnect.mheducation.com/flow/connect.htm .Search Ch 07 Ex 7-3 6 Help Save & Exit Submit Saved Sig Check my work Required information Use the following information for the Exercises below. Ruiz Co. provides the following sales forecast for the next four months: points April May June July 790 Sales (units) 670 750 700 Hint Ask The company wants to end each month with ending finished goods inventory equal to 20% of next month\'s forecasted sales. Finished goods inventory on April 1 is 134 units. Assume July\'s budgeted production is 700 units. In addition, each finished unit requires six pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 40% of next month\'s production needs. Beginning raw materials inventory for April was 1,646 pounds. Assume direct materials cost $5 per pound. Print Exercise 7-3 Manufacturing: Production budget LO P1 Prepare a production budget for the months of April, May, and June. RUIZ CO Production Budget For April, May, and June April Ma June Hill Prev 1 of 1 Next 1010

Solution

RUIZ CO. Production Budget For April, May, and June April May June Next month\'s budgeted sales (units) 750 700 790 Ratio of inventory to future sales 20% 20% 20% Desired ending inventory (units) 150 140 158 Budgeted sales (units) 670 750 700 Required units of available production 820 890 858 Beginning inventory (units) 134 150 140 Units to be produced 686 740 718