Sales and Production Budgets

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	260		72
Desired inventory (units), September 30	299		63
Expected sales volume (units):
East Region	3,550		4,000
West Region	5,000		4,350
Unit sales price	$115		$210

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			$_________

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	__________	____________