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 63 Desired inventory (units), June 30 294 55 Expected sales volume (units): Midwest Region 2,900 2,550 South Region 5,500 4,800 Unit sales price $140 $190 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 $ 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 Total Total units to be produced

Answer 1

Answer-

SONIC INC.
SALES BUDGET
FOR THE MONTH ENDING JUNE 30
PRODUCT & AREA	UNIT SALES VOLUME (a)	UNIT SELLING PRICE (b)	TOTAL SALES (c=a*b)
		$	$
Model Rumble
Midwest Region	2900	140	406000
South Region	5500	140	770000
Total (a)	8400		1176000
Model Thunder
Midwest Region	2550	190	484500
South Region	4800	190	912000
Total (b)	7350		1396500
Total Revenue from sales (c=a+b)			2572500

Answer-

SONIC INC.
PRODUCTION BUDGET
FOR THE MONTH ENDING JUNE 30
PRODUCT	MODEL RUMBLE	MODEL THUNDER
Expected units to be sold	8400	7350
Add:- Desired ending inventory	294	55
Less:- Opening inventory	256	63
Unit to be produced	8438	7342