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	254		75
Desired inventory (units), June 30	292		65
Expected sales volume (units):
East Region	3,300		2,900
West Region	5,050		5,700
Unit sales price	$100		$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			$

b. Prepare a production budget.

Sonic Inc.
Production Budget
For the Month Ending June 30
	Units Model Rumble	Units Model Thunder
Expected units to be sold
Total units required
Total units to be produced

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	254		75
Desired inventory (units), June 30	292		65
Expected sales volume (units):
East Region	3,300		2,900
West Region	5,050		5,700
Unit sales price	$100		$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			$

b. Prepare a production budget.

Sonic Inc.
Production Budget
For the Month Ending June 30
	Units Model Rumble	Units Model Thunder
Expected units to be sold
Total units required
Total units to be produced

Answer 1

Sales budget

	Unit Sales volume	Unit sale price	Total Sales
Model Rumble:
East region	3300	100	330000
West region	5050	100	505000
Total			835000
Model Thunder:
East region	2900	185	536500
West region	5700	185	1054500
Total			1591000
Total revenue from sales			2426000

Production budget

	Units Model Rumble	Units Model Thunder
Expected units to be sold	8350	8600
Add: Desired ending inventory	292	65
Total units required	8642	8665
Less; Beginning inventory	-254	-75
Total units to be produced	8388	8590