Check m Required information Use the following information for the Exercises bel
ID: 2433250 • Letter: C
Question
Check m Required information Use the following information for the Exercises below. Ruiz Co. provides the following sales forecast for the next four months: April May June July Sales (units 570 65 60 690 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 114 units. Assube July's budgeted production is 600 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 879 pounds. Assume direct materials cost $4 per pound. Exercise 7-4 Manufacturing: Direct materials budget LO P1 Brongro a diroct matarials hiudtet for Anril May and June. (Round your intermediate calculations and final answers to the nearestExplanation / Answer
RUIZ COMPANY Direct Material budget For April, May and June April May June Budgeted Productions 586 640 618 Materials per unit of production(lbs.) 5 5 5 Materials neded for production(lbs.) 2930 3200 3090 Ending Inventory of materials(lbs.) 960 927 900 Total Materials requirement(lbs.) 3890 4127 3990 Beginning Inventory of Materials(lbs.) 879 960 927 Materials to be purchased(lbs.) 3011 3167 3063 Material cost per unit $ 4 $ 4 $ 4 Total Budgeted direct material cost $ 12,044 $ 12,668 $ 12,252 Workings: Working: a. Finished goods ending inventory calculation: April May June Next Month's forcasted sales a 650 600 690 Finished goods ending inventory calculation b=a*20% 130 120 138 b. Production calculation: April May June Sales (units) 570 650 600 Ending Units 130 120 138 Total Units to be needed 700 770 738 Less:Beginning inventory 114 130 120 Production needed 586 640 618 c. Materials Ending Inventory Calculation: April May June Next month's Production needed a 640 618 600 Material needed per unit b 5 5 5 Materials Required for production c=a*b 3200 3090 3000 Ending Inventory of materials d=c*30% 960 927 900