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	256		69
Desired inventory (units), June 30	294		60
Expected sales volume (units):
East Region	2,650		2,950
West Region	5,750		5,000
Unit sales price	$120		$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:
East Region		$	$
West Region
Total			$
Model Thunder:
East Region		$	$
West Region
Total			$
Total revenue from sales			$

b. Prepare a production budget.

Sonic Inc.
Production Budget
For the Month Ending June 30
	Units Model Rumble	Units Model Thunder
Expected units to be sold
Total units required
Total units to be produced

Answer 1

--Requirement 'a'

Sonic Inc.
Sales Budget
For the Month Ending June 30
Product and Area	Unit	Unit	Total
	Sales	Selling	Sales
	Volume	Price
Model Rumble:
East Region	2650	$120	$318,000
West Region	5750	$120	$690,000
Total	8400		$1,008,000
Model Thunder:
East Region	2950	$215	$634,250
West Region	5000	$215	$1,075,000
Total	7950		$1,709,250
Total revenue from sales			$2,717,250

--Requirement 'b'

Sonic Inc.
Production Budget
For the Month Ending June 30
	Units Model Rumble	Units Model Thunder
Expected units to be sold	8,400	7,950
Desired ending inventory June 30	294	60
Total units required	8,694	8,010
Less: Beginning Inventory June 1	256	69
Total units to be produced	8,438	7,941