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	282		78
Desired inventory (units), June 30	324		68
Expected sales volume (units):
Midwest Region	3,850		4,300
South Region	5,400		4,700
Unit sales price	$130		$190

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

Sales budget :

Product and Area	Unit sales volume	Unit Sale price	Total Sales
Model: Rumble
Midwest Region	3850	130	500500
South Region	5400	130	702000
Total			1202500
Model: Thunder
Midwest Region	4300	190	817000
South Region	4700	190	893000
Total			1710000
Total revenue from sales			2912500

Production budget :

	Unit rumble	Unit thunder
Sales units	9250	9000
Add: Desired ending inventory	324	68
Total	9574	9068
Less; Beginning inventory	-282	-78
Total units to be produced	9292	8990