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: Line Item Description Rumble Thunder Estimated inventory (units), June 1 800 300 Desired inventory (units), June 30 500 400 Expected sales volume (units): North Region 11,000 3,500 South Region 14,000 5,500 Unit sales price $70 $90 a. Prepare a sales budget. Bowser Inc.Sales BudgetFor 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 b. Prepare a production budget. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Bowser Inc.Production BudgetFor the Month Ending June 30 Line Item Description Units Rumble Units Thunder Total units available Total units to be produced
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.
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:
| Line Item Description | Rumble | Thunder |
|---|---|---|
| Estimated inventory (units), June 1 | 800 | 300 |
| Desired inventory (units), June 30 | 500 | 400 |
| Expected sales volume (units): | ||
| North Region | 11,000 | 3,500 |
| South Region | 14,000 | 5,500 |
| Unit sales price | $70 | $90 |
a. Prepare a sales budget.
Bowser Inc.Sales BudgetFor 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 |
b. Prepare a production budget. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Bowser Inc.Production BudgetFor the Month Ending June 30
| Line Item Description | Units Rumble | Units Thunder |
|---|---|---|
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| Total units available | ||
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| Total units to be produced |
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