Sales and Production BudgetsVibrant 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) aproduction budget:Estimated inventoryRumble Thunder24766(units), June 1Desired inventory28457(units), June 30Expected sales volume(units):North Region2,2502,500South Region5,8505,100Unit sales price$125$195a. Prepare a sales budget.Vibrant Inc.Sales BudgetFor the Month Ending June 30UnitUnitVolumeSales SellingPriceTotalSalesProduct and AreaModel Rumble:North RegionSouth RegionTotalModel Thunder:North RegionSouth RegionTotalTotal revenue from salesQO QO0000000b. Prepare a production budget.Vibrant Inc.Production BudgetFor the Month Ending June 30UnitsUnitsModel ModelRumble ThunderExpected units to be soldTotal units requiredTotal units to be produced

A. Sales Budget forecasts the total amount of sales in units and in amount that the company will…

Answered: Sales and Production Budgets Vibrant…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 6E: Sales and production budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder....

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Operating Budget, Comprehensive Analysis Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow: The following data pertain to production policies and manufacturing specifications followed by Allison Manufacturing: a. Finished goods inventory on January 1 is 32,000 units, each costing 166.06. The desired ending inventory for each month is 80% of the next months sales. b. The data on materials used are as follows: Inventory policy dictates that sufficient materials be on hand at the end of the month to produce 50% of the next months production needs. This is exactly the amount of material on hand on December 31 of the prior year. c. The direct labor used per unit of output is 3 hours. The average direct labor cost per hour is 14.25. d. Overhead each month is estimated using a flexible budget formula. (Note: Activity is measured in direct labor hours.) e. Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. (Note: Activity is measured in units sold.) f. The unit selling price of the subassembly is 205. g. All sales and purchases are for cash. The cash balance on January 1 equals 400,000. The firm requires a minimum ending balance of 50,000. If the firm develops a cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid at the end of the quarter, as is the interest due (cash borrowed at the end of the quarter is repaid at the end of the following quarter). The interest rate is 12% per annum. No money is owed at the beginning of January. Required: 1. Prepare a monthly operating budget for the first quarter with the following schedules. (Note: Assume that there is no change in work-in-process inventories.) a. Sales budget b. Production budget c. Direct materials purchases budget d. Direct labor budget e. Overhead budget f. Selling and administrative expenses budget g. Ending finished goods inventory budget h. Cost of goods sold budget i. Budgeted income statement j. Cash budget 2. CONCEPTUAL CONNECTION Form a group with two or three other students. Locate a manufacturing plant in your community that has headquarters elsewhere. Interview the controller for the plant regarding the master budgeting process. Ask when the process starts each year, what schedules and budgets are prepared at the plant level, how the controller forecasts the amounts, and how those schedules and budgets fit in with the overall corporate budget. Is the budgetary process participative? Also, find out how budgets are used for performance analysis. Write a summary of the interview.
Production budget Healthy Measures Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows: The finished goods inventory estimated for March 1, for the Bath and Gym scale models is 11,800 and 8,100 units, respectively. The desired finished goods inventory for March 31 for the Bath and Gym scale models is 15,000 and 7,500 units, respectively. Prepare a production budget for the Bath and Gym scales for the month ended March 31.
Sales and production budgets Ultimate Audio Company manufactures two models of speakers. U500 and S1000. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget.
Digital Solutions Inc. uses flexible budgets that are based on the following data: Prepare a flexible selling and administrative expenses budget for October for sales volumes of 500,000, 750,000, and 1,000,000.
Subject- accounting
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 1 235 69 Desired inventory (units), June 30 270 60 Expected sales volume (units): East Region 2,850 2,500 West Region 4,850 5,500 Unit sales price $135 $185 a. Prepare a sales budget. Sonic Inc. Sales Budget For the Month Ending June 30 Product and Area UnitSalesVolume UnitSellingPrice TotalSales Model Rumble: East Region fill in the blank a2cab3f7d050faf_1 $fill in the blank a2cab3f7d050faf_2 $fill in the blank a2cab3f7d050faf_3 West Region fill in the blank a2cab3f7d050faf_4 fill in the blank a2cab3f7d050faf_5 fill in the blank a2cab3f7d050faf_6 Total fill in the blank a2cab3f7d050faf_7 $fill in the blank a2cab3f7d050faf_8 Model Thunder: East…
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 1 284 83 Desired inventory (units), June 30 326 72 Expected sales volume (units): Midwest Region 3,900 3,450 South Region 5,400 6,100 Unit sales price $105 $220 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 9bb207fb4056f89_1 $fill in the blank 9bb207fb4056f89_2 $fill in the blank 9bb207fb4056f89_3 South Region fill in the blank 9bb207fb4056f89_4 fill in the blank 9bb207fb4056f89_5 fill in the blank 9bb207fb4056f89_6 Total fill in the blank 9bb207fb4056f89_7 $fill in the blank 9bb207fb4056f89_8 Model: Thunder Midwest Region fill in the blank…
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 1 276 81 Desired inventory (units), June 30 317 70 Expected sales volume (units): Midwest Region 3,600 3,150 South Region 5,450 6,150 Unit sales price $115 $215 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 931981002034fb4_1 $fill in the blank 931981002034fb4_2 $fill in the blank 931981002034fb4_3 South Region fill in the blank 931981002034fb4_4 fill in the blank 931981002034fb4_5 fill in the blank 931981002034fb4_6 Total fill in the blank 931981002034fb4_7 $fill in the blank 931981002034fb4_8 Model: Thunder…
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 1 288 92 Desired inventory (units), June 30 331 80 Expected sales volume (units): Midwest Region 4,250 4,750 South Region 5,200 5,900 Unit sales price $115 $210
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 1 211 62 Desired inventory (units), June 30 242 54 Expected sales volume (units): East Region 2,100 1,850 West Region 4,800 5,400 Unit sales price $115 $210 a. Prepare a sales budget. Sonic Inc. Sales Budget For the Month Ending June 30 Product and Area UnitSalesVolume UnitSellingPrice TotalSales Model Rumble: East Region $ $ West Region Total $ Model Thunder: East Region $ $ West Region Total $ Total revenue from sales $ b. Prepare a production budget. Sonic Inc. Production Budget For the Month Ending June 30 Units Model Rumble Units Model Thunder Expected units to be sold…
Sales and production budgets Bowser 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): North Region South Region Unit sales price a. Prepare a sales budget. Bowser Inc. Sales Budget For the Month Ending June 30 250 79 287 69 2,800 3,150 5,400 6,100 $145 $225 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 10000 1000 b. Prepare a production budget. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Bowser Inc. Production Budget For the Month Ending June 30 Line Item Description Units Rumble Units Thunder Total units available Total units to be produced
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 1 305 76 Desired inventory (units), June 30 350 66 Expected sales volume (units): Midwest Region 4,300 3,800 South Region 5,700 4,950 Unit sales price $135 $215 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 South Region Total Model: Thunder Midwest Region South Region Total Total revenue from sales 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 Total units available Total units to be produced %24

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