Harmony Audio Company manufactures two models of speakers, DL and XL. Based on the following production and sales data for September 2016, prepare (a) a sales budget and (b) a production budget.

DL XL Estimated inventory (units), September 1 229 56 Desired inventory (units), September 30 263 49 Expected sales volume (units): East Region 2,400 2,100 West Region 5,100 4,450 Unit sales price $95 $195

a. Prepare a sales budget.

Harmony Audio Company Sales Budget For the Month Ending September 30, 2016 Product and Area Unit Sales Volume Unit Selling Price Total Sales Model DL: East Region $ $ West Region Total $ Model XL: East Region $ $ West Region Total $ Total revenue from sales $

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

Learning Objective 4.

b. Prepare a production budget.

Harmony Audio Company Production Budget For the Month Ending September 30, 2016 Units Model DL Units Model XL Expected units to be sold Plus desired inventory, September 30, 2016 Total Less estimated inventory, September 1, 2016 Total units to be produced

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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.

Learning Objective 4. I understood the top portion but need help on the 2nd part of the assignment.