chapter 8

Sales and production budgets

Bowser 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:

Line Item Description	Rumble	Thunder
Estimated inventory (units), June 1	271	78
Desired inventory (units), June 30	312	68
Expected sales volume (units):
North Region	4,100	3,600
South Region	4,800	5,400
Unit sales price	$120	$190

Question Content Area

a. Prepare a sales budget.

Bowser Inc. Sales Budget For the Month Ending June 30

Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
Model: Rumble
North Region	North Region	$North Region	$North Region
South Region	South Region	South Region	South Region
Total	Total		$Total
Model: Thunder
North Region	North Region	$North Region	$North Region
South Region	South Region	South Region	South Region
Total	Total		$Total
Total revenue from sales			$Total revenue from sales

Question Content Area

b. Prepare a production budget. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Bowser Inc. Production Budget For the Month Ending June 30

Line Item Description	Units Rumble	Units Thunder
DepreciationDirect laborEstimated inventory, June 1Expected units to be soldSupervisor salaries	- Select -	- Select -
DepreciationDesired inventory, June 30Direct laborEstimated inventory, June 1Supervisor salaries	- Select -	- Select -
Total units available	Total units available	Total units available
DepreciationDirect laborEstimated inventory, June 1Expected units to be soldSupervisor salaries	- Select -	- Select -
Total units to be produced	Total units to be produced	Total units to be produced