Julian, Inc., makes and sells drum sets. Hope Smith, controller, is responsible for preparing the master budget.

Question:

Julian, Inc., makes and sells drum sets. Hope Smith, controller, is responsible for preparing the master budget. The sales manager has given Hope the following sales forecast for the coming months.

Julian expects to have 5,000 drum sets in ending inventory on March 31. The company€™s policy is to carry 50 percent of the following month€™s projected sales in ending inventory.

Required
Prepare Julian€™s production budget for the secondquarter.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...