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	242		72
Desired inventory (units), June 30	278		63
Expected sales volume (units):
Midwest Region	2,250		2,000
South Region	5,700		6,450
Unit sales price	$135		$200

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 of SONIC INC.

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	2250	$135	$303750 ( 2250 units X $135 per unit)
South Region	5700	$135	$769500 ( 5700 units X $135 per unit)
TOTAL			$1073250 (Total sales estimated for Midwest and South region for Model RUMBLE)
Model: THUNDER
Midwest Region	2000	$200	$400000 ( 2000 units X $200 per unit)
South Region	6450	$200	$1290000 ( 6450 units X $200 per unit)
TOTAL			$1690000 (Total Sales estimated for Midwest and South region for Model THUNDER)
TOTAL REVENUE FROM SALES			$2763250 (Total Sales estimated for both models of speakers for the month ending June 30)

Production Budget of SONIC INC.

SONIC INC
Production Budget
For the month ending June 30
	Units RUMBLE	Units THUNDER
Midwest Region	2250	2000
South Region	5700	6450
TOTAL	7950 Units	8450 units
Add: Desired Inventory , June 30 (this is added to Total units sold in Midwest and south region because these are closing inventory which need to be available over and above all sales as mentioned above)	278	63
Less: Estimated Inventory, June 01 (This is subtracted from budget because they are already estimated to be in existence in the beginning of June month and don't need to be further manufactured)	- 242	- 72
TOTAL UNITS TO BE PRODUCED	7986 units	8441 units