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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	260		76
Desired inventory (units), June 30	299		66
Expected sales volume (units):
Midwest Region	3,300		2,900
South Region	5,250		5,950
Unit sales price	$140		$185

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a. Prepare a sales budget.

Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
Model: Rumble
Midwest Region	fill in the blank 885fed05502af87_1	$fill in the blank 885fed05502af87_2	$fill in the blank 885fed05502af87_3
South Region	fill in the blank 885fed05502af87_4	fill in the blank 885fed05502af87_5	fill in the blank 885fed05502af87_6
Total	fill in the blank 885fed05502af87_7		$fill in the blank 885fed05502af87_8
Model: Thunder
Midwest Region	fill in the blank 885fed05502af87_9	$fill in the blank 885fed05502af87_10	$fill in the blank 885fed05502af87_11
South Region	fill in the blank 885fed05502af87_12	fill in the blank 885fed05502af87_13	fill in the blank 885fed05502af87_14
Total	fill in the blank 885fed05502af87_15		$fill in the blank 885fed05502af87_16
Total revenue from sales			$fill in the blank 885fed05502af87_17

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Once sales quantities are estimated, the expected sales revenue can be determined.

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

	Units Rumble	Units Thunder
DepreciationDirect laborEstimated inventory, June 1Expected units to be soldSupervisor salariesExpected units to be sold	Expected units to be sold	Expected units to be sold
DepreciationDesired inventory, June 30Direct laborEstimated inventory, June 1Supervisor salariesDesired inventory, June 30	Desired inventory, June 30	Desired inventory, June 30
Total units available	fill in the blank 64b70d009fd9fd0_7	fill in the blank 64b70d009fd9fd0_8
DepreciationDirect laborEstimated inventory, June 1Expected units to be soldSupervisor salariesEstimated inventory, June 1	Estimated inventory, June 1	Estimated inventory, June 1
Total units to be produced	fill in the blank 64b70d009fd9fd0_12	fill in the blank 64b70d009fd9fd0_13

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Remember to take into account expected units to be sold plus desired units in ending inventory less estimated units in beginning inventory when calculating total units to be produced.

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