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.

			April		May		June		July
	Forecasted unit sales		12,000		15,000		10,000		11,000

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.)