Please Use the following information for the Exercises below. Ruiz Co. provides

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Use the following information for the Exercises below. Ruiz Co. provides the following sales forecast for the next four month ril May 630 Sales (units) 71 660 758 wants to end each month with ending finished goods inventory equal to 40% of next month's forecasted The company sales. Finished goods inventory on April 1 is 252 units. Assume July's budgeted production is 660 units. In addition, each finished unit requires five pounds (lbs.) of raw materials and the company wants to end inventory equal to 30% of next m Assume direct materials cost $4 per pound. onth s production needs. Beginning raw materials inventory for April was 993 pounds. Exercise 20-4 Manufacturing: Direct materials budget LO P1 Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Direct Materials Budget lbs.) (lbs.) s to be

Explanation / Answer

Production Budget April May June july Expected sale units 630 710 660 750 Add:Ending inventory 40% 284 264 300 total needs 914 974 960 less:Beginning inventory -252 -284 -264 Budgeted production 662 690 696 Direct materials Budget April May June july Budgeted production (units) 662 690 696 660 materials requirement per unit 5 5 5 5 materials needed for production 3310 3450 3480 3300 ending inventory 1035 1044 990 total material requirements 4345 4494 4470 beginning inventory 993 1035 1044 materials to be purchased 3352 3459 3426 materials price per pound 4 4 4 tota budgeted direct materials cost 13408 13836 13704

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