Homework SourseSales and Production Budgets Sonic Inc manufactures two mode
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.
a. Prepare a sales budget.
b. Prepare a production budget.
| Rumble | Thunder | ||
| Estimated inventory (units), June 1 | 282 | 69 | |
| Desired inventory (units), June 30 | 324 | 60 | |
| Expected sales volume (units): | |||
| East Region | 3,550 | 3,100 | |
| West Region | 5,700 | 4,950 | |
| Unit sales price | $145 | $185 |
Solution
Sonic Inc.
| 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 | 3550 | 145 | 514750 |
| West Region | 5700 | 145 | 826500 |
| Total | 1341250 | ||
| Model Thunder: | |||
| East Region | 3100 | 185 | 573500 |
| West Region | 4950 | 185 | 915750 |
| Total | 1489250 | ||
| Total revenue from sales | 2830500 | ||
| b | |||
| Sonic Inc. | |||
| Production Budget | |||
| For the Month Ending June 30 | |||
| Units Model Rumble | Units Model Thunder | ||
| Expected units to be sold | 9250 | 8050 | |
| Plus desired inventory, June 30 | 324 | 60 | |
| Total units required | 9574 | 8110 | |
| Less estimated inventory, June 1 | 282 | 69 | |
| Total units to be produced | 9292 | 8041 |
