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I https://newconnect.mheducation.com/flow/connect.html 4 Required information Use the following information for the Exercises below Ruiz Co provides the following sales forecast for the next four months: AprilMay JuneJuly 64872 673 76 Sales (units) The company wants to end each month with ending finished goods inventory equal to 30% of next month's forecasted sales. Finished goods inventory on Apri is 192 units. Assume July's budgeted production is 670 unts in addition, each finished unit requires five pounds (lbs )of rew materials and the compony wants to end each month with raw materiels inventory equal to 30% of next mont 's oroduction nee s Beginning ren materie s n entor rApr was 99 pou ds Assume direct materials cost $4 per pound Fxercise 7-4 Manufecturing: Direct materials budget LO P1

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Note: The question requires rounding off of intermediate calculations and final answers to nearest whole dollar amount but does not mention regarding rouding off of intermediate calculations of quantities. Hence quantities have not been rounded off.

RUIZ CO. Direct Materials Budget For April, May, and June April May June July Budgeted production (units) 664 705 697 670 Material needed per unit (lbs.) 5 5 5 5 Materials needed for production (lbs.) 3320 3525 3485 3350 Desired ending inventory of materials 1057.5 1045.5 1005 Total materials requirements (lbs.) 4377.5 4570.5 4490 Less beginning inventory of materials 996 1057.5 1045.5 Materials to be purchased (lbs.) 3381.5 3513 3444.5 Materials price per pound $       4.00 $       4.00 $       4.00 Budgeted cost of direct materials purchases $ $ 13,526 $ 14,052 $ 13,778

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