Question

Harmony Audio Company manufactures two models of speakers, DL and XL. Based on the following production and sales data for September 2016, prepare (a) a sales budget and (b) a production budget.

DL XL

Estimated inventory (units), September 1236 76

Desired inventory (units), September 30271 66

Expected sales volume (units):   

East Region2,750 3,100

West Region5,000 5,650

Unit sales price$110 $215

a. Prepare a sales budget.

Harmony Audio Company
Sales Budget
For the Month Ending September 30, 2016
Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
Model DL:
East Region		$	$
West Region
Total			$
Model XL:
East Region		$	$
West Region
Total			$
Total revenue from sales			$

b. Prepare a production budget.

Harmony Audio Company
Production Budget
For the Month Ending September 30, 2016
	Units Model DL	Units Model XL
Expected units to be sold
Plus desired inventory, September 30, 2016
Total
Less estimated inventory, September 1, 2016
Total units to be produced

Answer 1

Total sales Price Harmony Audio Company Sales Budget for the Month Ending September 30, 2016 Poroduct and Area Units Sales Volume Unit Selling Model DL East Region 2,750 $ 110 west Region S,000 $ 110 Total 7,750 Model XL East Region 3,100 $215 West Region 5,650 $215 Total 8,750 Total Menenut from Sales $ 30 2,500 $ 550,000 $ 852,500 $ 666,500 $1,214, 750 $ 1,881,250 $2,733,750 Harmony Audio company Production Budget for the Month Ending september 30, 2016 Units Model Units Model DL XL 8,750 Expected units to be sold Add: Desined inventory, September 30, 2016 7750 3.0,271 66 38,021 8,816 1, 236 76 Total Less: estimated Total units inventory, september 1, 2016 to be produced 36,785 8,740