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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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**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:**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.
## 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.
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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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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