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 1 278 77 Desired inventory (units), June 30 319 67 Expected sales volume (units): East Region 4,100 4,600 West Region 5,000 4,350 Unit sales price $115 $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: East Region $ $ West Region Total $ Model Thunder: East Region $ $ West Region Total $ Total revenue from sales $

2.

Personal Budget

At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

Cash balance, September 1 (from a summer job)	$6,350
Purchase season football tickets in September	90
Additional entertainment for each month	220
Pay fall semester tuition in September	3,400
Pay rent at the beginning of each month	310
Pay for food each month	170
Pay apartment deposit on September 2 (to be returned December 15)	400
Part-time job earnings each month (net of taxes)	790

a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign.

KATHERINE MALLOY
Cash Budget
For the Four Months Ending December 31
	September	October	November	December
Estimated cash receipts from:
Part-time job	$	$	$	$
Deposit
Total cash receipts	$	$	$	$
Estimated cash payments for:
Season football tickets	$
Additional entertainment		$	$	$
Tuition
Rent
Food
Deposit
Total cash payments	$	$	$	$
Overall cash increase (decrease)	$	$	$	$
Cash balance at beginning of month
Cash balance at end of month	$	$	$	$

Answer 1

Sales Budget (Area Wise)
East Region
	Sales in unit (A)	Sales Per unit (B)	Sales (A*B)($)
Rumble	4100	115	471500
Thunder	4600	185	851000
Total			1322500
West Region
Rumble	5000	115	575000
Thunder	4350	185	804750
Total			1379750
Total Revenue			2702250
Sales Budget (Product Wise)
	Rumble	Thunder	Total
Sales in unit (A)	9100	8950
Sales Per unit (B)	115	185
Sales (A*B)	1046500	1655750	2702250
Production Budget
	Rumble	Thunder
Sales unit	9100	8950
Add: Opening inventory	278	77
Less: Closing stock	319	67
Required Production	9059	8960