Question: 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
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 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.
Required
Prepare Rossano's production budget for the second quarter.
April May June July Forecasted unit sales 12,000 15,000 10,000 11,000
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