Exercise 5-10 Preparing A Production Budget (CMA Adapted) Rossano, Inc., makes and sells drum sets. Nick Ross, controller, is responsible for preparing the master budget. The sales manager has given Nick the following sales forecast for the coming months. Rossano expects to have A,000 drum sets in ending inventory on March 31. The company's policy is to carry 30% of the following month's projected sales in ending inventory. Prepare Rossano's production budget for the second quarter. April May June July 2nd Quarter Budgeted unit sales 15,000 Budgeted ending inventory 4.500 3000 3, 300 3 300 Total units required 16.500 18.000 13,300 40 300 Beginning inventory 3,600 4,500 3,000 3.600 Budgeted production 12,900 13500 10,300 34 700