Exercise $20-3($Static$)$ Manufacturing: Production budget LO P$1$

Ruiz Company provides the following budgeted sales for the next four months. The company wants to end each month with ending finished goods inventory equal to $25\%$ of next month's budgeted unit sales. Finished goods inventory on April $1$ is $125$ units. Prepare a production budget for the months of April, May, and June.

$\backslash$table$[[,$April,May,June,July$],[$Budgeted sales units,$500,580,540,620]]$

$\backslash$table$[[$RUIZ COMPANY,$],[$Production Budget,$],[$Budgeted sales units,April,May,June,$],[$Add: Desired ending inventory,$500,580,540,],[$Next period budgeted sales units,,,,$],[$Ratio of inventory to future sales,$580,540,620,],[$Desired ending inventory units,$25\%,25\%,25\%,],[$Total required units,$145,135,155,],[$Less: Beginning inventory units,$645,715,695,],[$Units to produce,$125,,,]]$