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	248		74
Desired inventory (units), June 30	285		64
Expected sales volume (units):
Midwest Region	2,800		2,450
South Region	5,350		6,050
Unit sales price	$115		$185

Question Content Area

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
Midwest Region	______	$______	$______
South Region	______	______	______
Total	______		$______
Model: Thunder
Midwest Region	______	$______	$______
South Region	______	______	_______
Total	______		$______
Total revenue from sales			$______

Question Content Area

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

Sonic Inc. Production Budget For the Month Ending June 30

	Units Rumble	Units Thunder
Depreciation/Direct labor/Estimated inventory, June 1 Expected units to be sold/Supervisor salaries	- Select -	- Select -
Depreciation/Desired inventory, June 30 Direct labor/Estimated inventory, June 1 Supervisor salaries	- Select -	- Select -
Total units available	______	______
Depreciation/Direct labor/Estimated inventory, June 1 Expected units to be sold/Supervisor salaries	- Select -	- Select -
Total units to be produced	______	______