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 1 306 Desired Inventory (units), June 30 352 Expected sales volume (units): Midwest Region 4,250 3,750 South Region 5,800 5,050 Unit sales price $215 a. Prepare a sales budget. Sonic Inc. Sales Budget For the Month Ending June 30 Product and Area Unt Sales Volume Unit Selling Price Model: Rumble Midwest Region South Region Total Model: Thunder Midwest Region

Answer 1

a.

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	4250	95	403750
South Region	5800	95	551000
Total	10050		954750
Model : Thunder
Midwest Region	3750	215	806250
South Region	5050	215	1085750
Total	8800		1892000
Total revenue from sales			2846750

b.
Sonic Inc.
Production budget
For the month ending June 30
	Units Rumble	Units Thunder
Expected units to be sold	10050	8800
Desired inventory, June 30	352	66
Total	10402	8866
Estimated inventory, June 1	306	76
Total units to be produced	10096	8790