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	292		85
Desired inventory (units), June 30	336		74
Expected sales volume (units):
East Region	4,300		3,800
West Region	5,300		6,000
Unit sales price	$105		$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			$

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

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
Plus desired inventory, June 30
Total units required
Less estimated inventory, June 1
Total units to be produced