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	276		68
Desired inventory (units), June 30	317		59
Expected sales volume (units):
Midwest Region	3,250		2,850
South Region	5,800		5,050
Unit sales price	$100		$220

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
Expected units to be sold
Desired inventory, June 30
Total units available
Estimated inventory, June 1
Total units to be produced

Answer 1

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	3250	$100	$325000
South Region	5800	100	580000
Total			$905000
Model: Thunder
Midwest Region	2850	$220	$627000
South Region	5050	220	1111000
Total			$1738000
Total revenue from sales			$2643000

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
Expected units to be sold	9050	7900
Desired inventory, June 30	317	59
Total units available	9367	7959
Estimated inventory, June 1	-276	-68
Total units to be produced	9091	7891