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.
| 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 50% of the following month's projected sales in ending inventory.
Prepare Rossano's production budget for the second quarter.
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