1. 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	235		75
Desired inventory (units), June 30	270		65
Expected sales volume (units):
Midwest Region	2,800		3,150
South Region	4,900		5,550
Unit sales price	$135		$200

Question Content Area

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
Expected units to be sold	?	?
Desired Inventor, June 30	?	?
Total	?	?
Estimated inventory, June 1	?	?
Total units to be produced Rumble/Thunder	? ?

2. Direct Materials Purchases Budget

Romanos Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for September:

	Units
	12" Pizza		16" Pizza
Budgeted production volume	14,800		24,700

There are three direct materials used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows:

		12" Pizza		16" Pizza
Direct materials:
	Dough	0.90	lb. per unit	1.50	lbs. per unit
	Tomato	0.60	?	1.00	?
	Cheese	0.80	?	1.30	?

In addition, Romano's has determined the following information about each material:

	Dough		Tomato		Cheese
Estimated inventory, September 1	530	lbs.	200	lbs.	380	lbs.
Desired inventory, September 30	560	lbs.	190	lbs.	410	lbs.
Price per pound	$1.00		$2.60		$3.10

Prepare September's direct materials purchases budget for Romanos Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Romanos Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending September 30

	Dough	Tomato	Cheese	Total
Units required for production:	?	?	?	?
12" pizza	?	?	?	?
16" pizza	?	?	?	?
Desired inventory, September 1Desired inventory, September 30Estimated inventory, September 1Estimated inventory, September 30Supervisor salariesDesired inventory, September 30	?	?	?	?
Total units available	?	?	?	?
Desired inventory, September 1Desired inventory, September 30Estimated inventory, September 1Estimated inventory, September 30Supervisor salariesEstimated inventory, September 1	?	?	?	?
Total units to be purchased	?	?	?	?
Unit Price	?	?	?	?
Total direct materials to be purchased	?	?	?	?