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: Estimated inventory (units), June 1 Desired inventory (units), June 30 Expected sales volume (units): Midwest Region South Region Unit sales price a. Prepare sales budget. Midwest Region South Region Total Model: Thunder Midwest Region South Region Sonic Inc. Sales Budget For the Month Ending June 30 Product and Area Unit Sales Volume Unit Selling Price Total Sales Model: Rumble Total Total revenue from sales Rumble Thunder Total units available 258 296 3,450 5,000 $115 Sonic Inc. Production Budget For the Month Ending June 30 Total units to be produced 75 65 3,050 5,650 $225 Units Rumble Units Thunder b. Prepare a production budget. For those boxes in which you must enter subtracted or negative numbers use a minus sign. $ $ $
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 Budget and Production budget :
Sales budget is prepared to show the no. of units to be sold in the future period and the production budget is prepared to show the no. of units required to be produced so the budgeted sales requirement can be fulfilled. Both Sales and production budgets are prepared at the starting of the year.
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