Question

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 1 302 75 Desired inventory (units), June 30 347 65 Expected sales volume (units): Midwest Region 4,350 3,850 South Region 5,550 4,850 Unit sales price $120 $210 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

a
Sales Budget
For the Month Ending June 30
Product and Area	Unit Sales	Unit Selling Price	Total Sales
Model Rumble:
Midwest Region	4350	120	522000
South Region	5550	120	666000
Total	9900		1188000
Model Thunder:
Midwest Region	3850	210	808500
South Region	4850	210	1018500
Total	8700		1827000
Total revenue from sales	18600		3015000
b
Production Budget
For the Month Ending June 30
	Units Rumble	Units Thunder
Expected units to be sold	9900	8700
Desired inventory June 30	347	65
Total units available	10247	8765
Estimated inventory June 1	-302	-75
Total units to be produced	9945	8690