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	274		68
Desired inventory (units), June 30	315		59
Expected sales volume (units):
Midwest Region	4,200		3,700
South Region	4,800		4,200
Unit sales price	$115		$215

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

Sonia Inc
Sales Budget
For the Month Ending June 30
Product and Area	Sales volume	Selling Price/unit	Total Sales
Model-Rumble
Midwest Region	4200	$ 115	$ 4,83,000
South Region	4800	$ 115	$ 5,52,000
Total	9000		$ 10,35,000
Model-Thunder
Midwest Region	3700	$ 215	$ 7,95,500
South Region	4200	$ 215	$ 9,03,000
Total	7900		$ 16,98,500
Total Revenue from Sales			$ 27,33,500

Sonia Inc
Production Budget
For the Month Ending June 30
	Units Rumble	Units Thunder
Sales Units	9000 units	7900 units
Add: Ending Inventory on June 30	315 units	59 units
Total	9315 units	7959 units
Less : Beginning Inventory on June 1	274 units	68 units
Total units to be produced	9041 units	7891 units