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	290		79
Desired inventory (units), June 30	333		69
Expected sales volume (units):
Midwest Region	3,900		4,350
South Region	5,600		4,850
Unit sales price	$130		$185

Question Content Area

a. Prepare a sales budget.

Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
Model: Rumble
Midwest Region	fill in the blank 8cb1f1ff3032fcc_1	$fill in the blank 8cb1f1ff3032fcc_2	$fill in the blank 8cb1f1ff3032fcc_3
South Region	fill in the blank 8cb1f1ff3032fcc_4	fill in the blank 8cb1f1ff3032fcc_5	fill in the blank 8cb1f1ff3032fcc_6
Total	fill in the blank 8cb1f1ff3032fcc_7		$fill in the blank 8cb1f1ff3032fcc_8
Model: Thunder
Midwest Region	fill in the blank 8cb1f1ff3032fcc_9	$fill in the blank 8cb1f1ff3032fcc_10	$fill in the blank 8cb1f1ff3032fcc_11
South Region	fill in the blank 8cb1f1ff3032fcc_12	fill in the blank 8cb1f1ff3032fcc_13	fill in the blank 8cb1f1ff3032fcc_14
Total	fill in the blank 8cb1f1ff3032fcc_15		$fill in the blank 8cb1f1ff3032fcc_16
Total revenue from sales			$fill in the blank 8cb1f1ff3032fcc_17

Question Content Area

b. Prepare a production budget. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

	Units Rumble	Units Thunder
DepreciationDirect laborEstimated inventory, June 1Expected units to be soldSupervisor salaries	- Select -	- Select -
DepreciationDesired inventory, June 30Direct laborEstimated inventory, June 1Supervisor salaries	- Select -	- Select -
Total units available	fill in the blank a99008f9ff81fbf_7	fill in the blank a99008f9ff81fbf_8
DepreciationDirect laborEstimated inventory, June 1Expected units to be soldSupervisor salaries	- Select -	- Select -
Total units to be produced	fill in the blank a99008f9ff81fbf_12	fill in the blank a99008f9ff81fbf_13

Direct Materials Purchases Budget

Anticipated sales for Safety Grip Company were 33,000 passenger car tires and 10,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:

	Passenger Car	Truck
Rubber	34 lbs. per unit	79 lbs. per unit
Steel belts	7 lbs. per unit	18 lbs. per unit

The purchase prices of rubber and steel are $2.90 and $3.80 per pound, respectively. The desired ending inventories of rubber and steel belts are 31,000 and 7,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 36,000 and 5,000 pounds, respectively.

Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9.

	Rubber	Steel Belts	Total
Pounds required for production:
Passenger tires	fill in the blank 1 lbs.	fill in the blank 2 lbs.
Truck tires	fill in the blank 3	fill in the blank 4
Desired inventory, December 1, 20Y9Desired inventory, December 31, 20Y9Direct labor hourEstimated inventory, December 1, 20Y9Estimated inventory, December 31, 20Y9	- Select -	- Select -
Total pounds available	fill in the blank 8 lbs.	fill in the blank 9 lbs.
DepreciationDesired inventory, January 1, 20Y9Desired inventory, January 31, 20Y9Estimated inventory, January 1, 20Y9Estimated inventory, January 31, 20Y9	- Select -	- Select -
Total units purchased	fill in the blank 13 lbs.	fill in the blank 14 lbs.
Unit price	x $fill in the blank 15	x $fill in the blank 16
Total direct materials to be purchased	$fill in the blank 17	$fill in the blank 18	$fill in the blank 19