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	260		76
Desired inventory (units), June 30	299		66
Expected sales volume (units):
Midwest Region	3,650		3,200
South Region	4,900		5,550
Unit sales price	$95		$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
Total units to be produced

Answer 1

	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	3,650	95	346750
	South Region	4,900	95	465500
	Total	8,550		812250
	Model: Thunder
	Midwest Region	3,200	200	640000
	South Region	5,550	200	1110000
	Total	8,750		1750000
	Total revenue from sales			$
	Sonic Inc.
	Production Budget
	For the Month Ending June 30
		Units Rumble	Units Thunder
	Expected units to be sold	8,550	8,750
	Desired inventory, June 30	299	66
	Total	8,849	8,816
	Estimated inventory, June 1	260	76
	Total units to be produced	8,589	8,740