Question

Sales and Production Budgets

Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget:

	Rumble		Thunder
Estimated inventory (units), June 1	274		68
Desired inventory (units), June 30	315		59
Expected sales volume (units):
Midwest Region	3,600		3,150
South Region	5,400		4,700
Unit sales price	$135		$200

a. Prepare a sales budget.

Sonic Inc.
Sales Budget
For the Month Ending June 30
Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
Model: Rumble
Midwest Region		$	$
South Region
Total			$
Model: Thunder
Midwest Region		$	$
South Region
Total			$
Total revenue from sales			$

b. Prepare a production budget. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Sonic Inc.
Production Budget
For the Month Ending June 30
	Units Rumble	Units Thunder
Total units available
Total units to be produced

Answer 1

Answer-a)-

SONIC INC.
SALES BUDGET
FOR THE MONTH ENDING JUNE 30
PRODUCT & AREA	UNIT SALES VOLUME (a)	UNIT SELLING PRICE (b)	TOTAL SALES (c=a*b)
		$	$
Model Rumble
Midwest Region	3600	135	486000
South Region	5400	135	729000
Total (a)	9000		1215000
Model Thunder
Midwest Region	3150	200	630000
South Region	4700	200	940000
Total (b)	7850		1570000
Total Revenue from sales (c=a+b) $			2785000

b)-

SONIC INC.
PRODUCTION BUDGET
FOR THE MONTH ENDING JUNE 30
PRODUCT	MODEL RUMBLE	MODEL THUNDER
Expected units to be sold	9000	7850
Add:- Desired ending inventory	315	59
Less:- Opening inventory	274	68
Unit to be produced	9041	7841