1. 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	244		78
   Desired inventory (units), June 30	280		68
   Expected sales volume (units):
   Midwest Region	2,150		2,400
   South Region	5,850		6,600
   Unit sales price	$115		$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
   Midwest Region	fill in the blank fec50cfaa051009_1	$fill in the blank fec50cfaa051009_2	$fill in the blank fec50cfaa051009_3
   South Region	fill in the blank fec50cfaa051009_4	fill in the blank fec50cfaa051009_5	fill in the blank fec50cfaa051009_6
   Total	fill in the blank fec50cfaa051009_7		$fill in the blank fec50cfaa051009_8
   Model: Thunder
   Midwest Region	fill in the blank fec50cfaa051009_9	$fill in the blank fec50cfaa051009_10	$fill in the blank fec50cfaa051009_11
   South Region	fill in the blank fec50cfaa051009_12	fill in the blank fec50cfaa051009_13	fill in the blank fec50cfaa051009_14
   Total	fill in the blank fec50cfaa051009_15		$fill in the blank fec50cfaa051009_16
   Total revenue from sales			$fill in the blank fec50cfaa051009_17

   Feedback

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

   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
   	fill in the blank 1b4a8b01905106e_2	fill in the blank 1b4a8b01905106e_3
   	fill in the blank 1b4a8b01905106e_5	fill in the blank 1b4a8b01905106e_6
   Total units available	fill in the blank 1b4a8b01905106e_7	fill in the blank 1b4a8b01905106e_8
   	fill in the blank 1b4a8b01905106e_10	fill in the blank 1b4a8b01905106e_11
   Total units to be produced	fill in the blank 1b4a8b01905106e_12	fill in the blank 1b4a8b01905106e_13

   Feedback

   Remember to take into account expected units to be sold plus desired units in ending inventory less estimated units in beginning inventory when calculating total units to be produced.

   Feedback

   Partially correct

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