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.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!