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 Desired inventory (units), June 30 Expected sales volume (units): Midwest Region South Region Unit sales price a. Prepare a sales budget. Product and Area Model: Rumble Midwest Region South Region Total Model: Thunder Midwest Region South Region Total Total revenue from sales 750 500 0001 000 12,000 14,000 $60 300 250 3,500 4,000 $90 Sonic Inc. Sales Budget For the Month Ending June 30 Unit Sales Volume Unit Selling Price Total Sales 10000 1000
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 Desired inventory (units), June 30 Expected sales volume (units): Midwest Region South Region Unit sales price a. Prepare a sales budget. Product and Area Model: Rumble Midwest Region South Region Total Model: Thunder Midwest Region South Region Total Total revenue from sales 750 500 0001 000 12,000 14,000 $60 300 250 3,500 4,000 $90 Sonic Inc. Sales Budget For the Month Ending June 30 Unit Sales Volume Unit Selling Price Total Sales 10000 1000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:**Production Budget Preparation Guidance**
**Sonic Inc.**
**Production Budget**
*For the Month Ending June 30*
This section provides a template to prepare a production budget for Sonic Inc. The budget details are for the two product lines: *Units Rumble* and *Units Thunder*. Use this guide to calculate and input relevant data.
### Data Entry Fields:
- **Units Rumble / Units Thunder:**
- **Blank Fields:** Enter specific numeric data in these fields as necessary.
- **Total Units Available:**
- Compute and input the total number of units available for each product line.
- **Total Units to be Produced:**
- Calculate and enter the total number of units that need to be produced for each product line by the end of June.
### Instructions:
- For any entries that require subtraction or contain negative values, ensure to use a minus sign appropriately.
- Use these entries to accurately forecast production needs based on available data.
This template aids in systematically estimating the production requirements, ensuring efficient resource allocation and strategic planning for Sonic Inc.’s operations by the month's end.
Transcribed Image Text:## Sales and Production Budgets
Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, we need to prepare (a) a sales budget and (b) a production budget.
### Data Overview
#### Inventory Information:
- **Estimated inventory (units) as of June 1:**
- Rumble: 750
- Thunder: 300
- **Desired inventory (units) by June 30:**
- Rumble: 500
- Thunder: 250
#### Expected Sales Volume (units):
- **Midwest Region:**
- Rumble: 12,000
- Thunder: 3,500
- **South Region:**
- Rumble: 14,000
- Thunder: 4,000
#### Unit Sales Price:
- Rumble: $60
- Thunder: $90
### Requirements
#### 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 | | $60 | |
| South Region | | $60 | |
| **Total** | | | |
| **Model: Thunder** | | | |
| Midwest Region | | $90 | |
| South Region | | $90 | |
| **Total** | | | |
| **Total revenue from sales** | | | |
### Diagram Explanation
This table organizes the sales budget for Sonic Inc. by region and product model. To complete the table, multiply the unit sales volume by the unit selling price to calculate the total sales for each region and model. Sum these totals to find the company’s overall expected revenue for June.
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Introduction:
A sales budget is the estimated number of units and potential income that a firm expects to sell over a specific period of time. Organizations often measure this on a monthly, quarterly, or annual basis. Companies take into account variables including past sales trends, rival activity, and the present or anticipated economic circumstances when forecasting a sales budget.
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