Production Budget

Weightless Inc. produces a small and large version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows:

	Bath Scale		Gym Scale
East Region unit sales	24,200		33,100
West Region unit sales	26,100		27,400
Total	50,300		60,500

The finished goods inventory estimated for October 1 for the Bath and Gym scale models is 1,700 and 2,700 units, respectively. The desired finished goods inventory for October 31 for the Bath and Gym scale models is 1,200 and 2,900 units, respectively.

Prepare a production budget for the Bath and Gym scales for the month ended October 31.

WEIGHTLESS INC.
Production Budget
For the Month Ending October 31
	Units Bath Scale	Units Gym Scale
Expected units to be sold
Total units required
Total units to be produced

2.

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	242		72
Desired inventory (units), June 30	278		63
Expected sales volume (units):
East Region	2,450		2,150
West Region	5,500		6,200
Unit sales price	$120		$195

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:
East Region		$	$
West Region
Total			$
Model Thunder:
East Region		$	$
West Region
Total			$
Total revenue from sales			$

b. Prepare a production budget.

Sonic Inc.
Production Budget
For the Month Ending June 30
	Units Model Rumble	Units Model Thunder
Expected units to be sold
Total units required
Total units to be produced

3.

Direct Materials Purchases Budget

Lorenzos 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		25,700

Three direct materials are 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	0.80	lb. per unit	1.50	lb. per unit
	Tomato	0.50		0.70
	Cheese	0.70		1.30

In addition, Lorenzos has determined the following information about each material:

	Dough		Tomato		Cheese
Estimated inventory, September 1	580	lb.	220	lb.	270	lb.
Desired inventory, September 30	610	lb.	210	lb.	300	lb.
Price per pound	$1.40		$2.20		$3.10

Prepare September's direct materials purchases budget for Lorenzos Frozen Pizza Inc. When required, enter unit prices to the nearest cent.

Lorenzos 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
Total pounds required
Total units to be purchased
Unit price	x $	x $	x $
Total direct materials to be purchased	$	$	$	$

4.

Anticipated sales for Safety Grip Company were 55,000 passenger car tires and 17,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:

	Passenger Car	Truck
Rubber	34 lb. per unit	79 lb. per unit
Steel belts	4 lb. per unit	10 lb. per unit

The purchase prices of rubber and steel are $3.3 and $4.3 per pound, respectively. The desired ending inventories of rubber and steel belts are 52,000 and 11,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 61,000 and 9,000 pounds, respectively.

Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y8. When required, enter unit prices to the nearest cent.

Safety Grip Company
Direct Materials Purchases Budget
For the Year Ending December 31, 20Y8
	Rubber	Steel Belts	Total
Pounds required for production:
Passenger tires	lb.	lb.
Truck tires
Total pounds required	lb.	lb.
Total units purchased	lb.	lb.
Unit price	x $	x $
Total direct materials to be purchased	$	$	$