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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
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 | 292 | 81 | |
| Desired inventory (units), September 30 | 336 | 70 | |
| Expected sales volume (units): | |||
| East Region | 3,850 | 4,300 | |
| West Region | 5,750 | 5,000 | |
| Unit sales price | $145 | $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 | |||
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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