In: Accounting
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 | 64 | |
Desired inventory (units), June 30 | 299 | 56 | |
Expected sales volume (units): | |||
Midwest Region | 3,650 | 3,200 | |
South Region | 4,900 | 4,250 | |
Unit sales price | $145 | $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 | |||
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 |
Sonic Inc. Sales Budget For the Month Ending June 30 |
|||
Unit Sales Volume (A) |
Unit Selling price (B) |
Total Sales (A x B ) |
|
Model: Rumble | |||
Midwest Region | 3,650 | $ 145 | $ 529,250 |
South Region | 4,900 | $ 145 | $ 710,500 |
Total | $ 1,239,750 | ||
Model : Thunder | |||
Midwest Region | 3,200 | $ 185 | $ 592,000 |
South Region | 4,250 | $ 185 | $ 786,250 |
Total | $ 1,378,250 | ||
Total revenue from sales | $ 2,618,000 | ||
SONIC INC. Production Budget For the Month Ending June 30 |
|||
Units Rumble | Units Thunder | ||
Expected units to be sold |
8,550 ( 3,650 + 4,900 ) |
7,450 ( 3,200 + 4,250 ) |
|
Add:Desired inventory (units), June 30 | 299 | 56 | |
Total units required | 8,849 | 7,506 | |
Less: Estimated inventory (units), June 1 | -260 | -64 | |
Total Units to be produced | 8,589 | 7,442 |