Question

Ruiz Co. provides the following sales forecast for the next four months: April May June July Sales (units) 630 710 660 750 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 April 1 is 189 units. Assume July's budgeted production is 660 units. In addition, each finished unit requires four 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 1,046 pounds. Assume direct materials cost $4 per pound. Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)

Answer 1

for formulas and calculations, refer to the image below -

In case you have any query, kindly ask in comments.