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 $122468$

Desired inventory $($units$),$ June $3025759$

Expected sales volume $($units$)$:

North Region $2,1001,850$

South Region $5,2505,950$

Unit sales price $$120$ $$220$

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

Feedback Area

Feedback

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

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

Expected units to be sold

Expected units to be sold

Expected units to be sold

Desired inventory, June $30$

Desired inventory, June $30$

Desired inventory, June $30$

Total units available Total units available

Total units available

Estimated inventory, June $1$

Estimated inventory, June $1$

Estimated inventory, June $1$

Total units to be produced Total units to be produced

Total units to be produced

Feedback Area

Feedback

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