EX.22-06 Sales and Production Budgets

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 5E: Production budget Healthy Measures Inc. produces a Bath and Gym version of its popular electronic...
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b. Prepare a production budget.
SONIC INC.
Production Budget
For the Month Ending June 30
Expected units to be sold
Plus desired inventory, June 30
Total units required
Less estimated inventory, June 1
Total units to be produced
Units Model Rumble Units Model Thunder
Transcribed Image Text:b. Prepare a production budget. SONIC INC. Production Budget For the Month Ending June 30 Expected units to be sold Plus desired inventory, June 30 Total units required Less estimated inventory, June 1 Total units to be produced Units Model Rumble Units Model Thunder
EX.22-06 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.
Estimated inventory (units), June 1
Desired inventory (units), June 30
Expected sales volume (units):
East Region
West Region
Unit sales price
Rumble
262
301
2,700
5,900
$140
Thunder
66
57
2,400
5,150
$205
Transcribed Image Text:EX.22-06 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. Estimated inventory (units), June 1 Desired inventory (units), June 30 Expected sales volume (units): East Region West Region Unit sales price Rumble 262 301 2,700 5,900 $140 Thunder 66 57 2,400 5,150 $205
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