Question

Bass Audio Company manufactures two models of speakers, U500 and S1000. Based on the following production and sales data for June.

	U500		S1000
Estimated inventory (units), June 1	12,500		5,000
Desired inventory (units), June 30	15,000		7,500
Expected sales volume (units):
Northeast Region	70,000		50,000
Southwest Region	80,000		62,500
Unit sales price	$45		$80

a. Prepare a sales budget. Enter all amounts as positive numbers.

BASS AUDIO COMPANY
Sales Budget
For the Month Ending June 30
Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
Model U500:
Northeast Region		$	$
Southwest Region
Total			$
Model S1000:
Northeast Region		$	$
Southwest Region
Total			$
Total revenue from sales			$

Feedback

a. For each region and each model, multiply unit sales volume by unit selling price.

b. Prepare a production budget.

BASS AUDIO COMPANY
Production Budget
For the Month Ending June 30
	U500	S1000
Expected units to be sold
Plus desired inventory, June 30
Total
Less estimated inventory, June 1
Total units to be produced

Answer 1

a) BASS AUDIO COMPANY
Sales Budget
For the month ending june 30
product & area	unit sales volume	unit sales price	Total sales
Model U500
northest Region	70000	45	3150000
Southwest Region	80000	45	3600000
Total			6750000
Model S1000:
northest Region	50000	80	4000000
Southwest Region	62500	80	5000000
Total			9000000
Total revenue from sale			15750000

Production Budget
For the month ending june 30
	Model U500	Model S1000:
expected unit to be sold	150000	112500
desired ending inventory	15000	7500
Total	165000	120000
Beginning inventory	12500	5000
Total unit to be produced	152500	115000