Sales and Production Budgets

SoundLab Inc. 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	340		92
Desired inventory (units), September 30	300		101
Expected sales volume (units):
East Region	2,560		1,080
West Region	2,310		930
Unit sales price	$190		$300

Part A: Sales Budget

a. Prepare a sales budget.

SoundLab Inc.
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			$

Part B: Production Budget

b. Prepare a production budget.

SoundLab Inc.
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