Sales and Production Budgets

Vibrant 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	245		68
Desired inventory (units), June 30	282		59
Expected sales volume (units):
North Region	3,150		3,550
South Region	4,900		4,250
Unit sales price	$145		$185

Question Content Area

a. Prepare a sales budget.

Vibrant Inc. Sales Budget For the Month Ending June 30

Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
Model Rumble:
North Region
South Region
Total
Model Thunder:
North Region
South Region
Total
Total revenue from sales

Question Content Area

b. Prepare a production budget.

Vibrant Inc. Production Budget For the Month Ending June 30

	Units Model Rumble	Units Model Thunder
Expected units to be sold
Less desired inventory, June 30Less estimated inventory, June 1Plus desired inventory, June 30Plus estimated inventory, June 1Plus desired inventory, June 30	Plus desired inventory, June 30	Plus desired inventory, June 30
Total units required
Less desired inventory, June 30Less estimated inventory, June 1Plus desired inventory, June 30Plus estimated inventory, June 1Less estimated inventory, June 1	Less estimated inventory, June 1	Less estimated inventory, June 1
Total units to be produced