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	258		64
Desired inventory (units), June 30	296		56
Expected sales volume (units):
Midwest Region	3,000		2,650
South Region	5,450		4,750
Unit sales price	$120		$185

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
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	3000	120	360000
South Region	5450	120	654000
Total	8450		1014000
Model: Thunder
Midwest Region	2650	185	490250
South Region	4750	185	878750
Total	7400		1369000
Total revenue from sales			2383000
b
Sonic Inc.
Production Budget
For the Month Ending June 30
	Units Rumble	Units Thunder
Expected units to be sold	8450	7400
Desired inventory, June 30	296	56
Total units available	8746	7456
Estimated inventory, June 1	-258	-64
Total units to be produced	8488	7392