Sonic Inc. manufacturers 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: RumbleThunderestimated inventory (units), June 128076Desired inventory (units), June 3032266Expected sales volume (units): Midwest Region3,5003,900 South Region5,7004,950Unit sales price$125$210Refer to the pictures for the sales budget and production budget template. a. Prepare a sales budget.Sonic Inc.Sales BudgetFor the Month Ending June 30Product and AreaUnit Sales VolumeUnit Selling PriceTotal SalesModel: RumbleMidwest Region2$South RegionTotalModel: ThunderMidwest RegionSouth RegionTotalTotal 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 BudgetFor the Month Ending June 30Units RumbleUnits ThunderExpected units to be sold VDesired inventory, June 30Total units availableEstimated inventory, June 1Total units to be produced

Answered: Sonic Inc. manufacturers two models of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Sonic Inc. manufacturers 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	280	76
Desired inventory (units), June 30	322	66
Expected sales volume (units):
Midwest Region	3,500	3,900
South Region	5,700	4,950
Unit sales price	$125	$210

Refer to the pictures for the sales budget and production budget template.

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
2$
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
Expected units to be sold V
Desired inventory, June 30
Total units available
Estimated inventory, June 1
Total units to be produced

Expert Solution

Step 1 Sales and production budget

Sales budget estimates the amount and volume of sales to be made for a fixed future period whereas a production budget estimates the number of units that are expected to be produced.