Question

1. 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	264		71
   Desired inventory (units), June 30	303		62
   Expected sales volume (units):
   Midwest Region	3,050		3,400
   South Region	5,600		4,850
   Unit sales price	$130		$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			$

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   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
   Depreciation Direct labor Estimated inventory, June 1 Expected units to be sold Supervisor salaries
   Depreciation Desired inventory, June 30 Direct labor Estimated inventory, June 1 Supervisor salaries
   Total units available
   Depreciation Direct labor Estimated inventory, June 1 Expected units to be sold Supervisor salaries
   Total units to be produced

Answer 1

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	3050	$130	$396500
South Region	5600	130	728000
Total			$1124500
Model: Thunder
Midwest Region	3400	$215	$731000
South Region	4850	215	1042750
Total			$1773750
Total revenue from sales			$2898250

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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	8650	8250
Desired inventory, June 30	303	62
Total units available	8953	8312
Estimated inventory, June 1	-264	-71
Total units to be produced	8689	8241