Question
Exercise D5-10 Rossano, Inc., makes and sells drum sets. Nick Ross, controller, is responsible for preparing the master budget. The sales manager has given Nick
Exercise D5-10
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.
AprilMayJuneJuly
Forecasted unit sales12,00015,00010,00011,000
Rossano expects to have 6,000 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. (Round answers to 0 decimal places, e.g. 5,275.)
AprilMayJuneQuarter
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