CH 22 5

Sales and Production Budgets Vibrant 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 305 85 Estimated inventory (units), June 1 Desired inventory (units), June 30 Expected sales volume (units): 350 74 North Region 4,400 4,950 South Region 5,600 4,850 Unit sales price $145 $190 a. Prepare a sales budget. Vibrant Inc. Sales Budget For the Month Ending June 30 Unit Sales Volume Unit Selling Price Total Sales Product and Area Model Rumble: North Region South Region DOI Total Model Thunder: North Region South Region Total Total revenue from sales Feedback Check My Work Once sales quantities are estimated, the expected sales revenue can be determined. b. Prepare a production budget. Vibrant Inc. Production Budget For the Month Ending June 30 Units Units Model Model Rumble Thunder Expected units to be sold Plus desired inventory, June 30 Total units required Less estimated inventory, June 1 Total units to be produced