Sales and Production Budgets Harmony Audio Company manufactures two models of sp
ID: 2518271 • Letter: S
Question
Sales and Production Budgets
Harmony Audio Company manufactures two models of speakers, DL and XL. Based on the following production and sales data for September 2014, prepare (a) a sales budget and (b) a production budget.
a. Prepare a sales budget.
Harmony Audio Company
Sales Budget
For the Month Ending September 30, 2014
Product and Area
Unit Sales Volume
Unit Selling Price
Total Sales
Model DL:
East Region
$
$
West Region
Total
$
Model XL:
East Region
$
$
West Region
Total
$
Total revenue from sales
$
b. Prepare a production budget.
Harmony Audio Company
Production Budget
For the Month Ending September 30, 2014
Units Model DL
Units Model XL
Expected units to be sold
Plus desired inventory, September 30, 2014
Total
Less estimated inventory, September 1, 2014
Total units to be produced
DL XL Estimated inventory (units), September 1 309 85 Desired inventory (units), September 30 355 74 Expected sales volume (units): East Region 4,300 4,800 West Region 5,850 5,100 Unit sales price $120 $225
Explanation / Answer
a) Prepare sales budget :
Production budget :
Less estimated inventory, September 1, 2014
Units sales volume Unit selling price Total sales Model DL : East region 4300 120 516000 West region 5850 120 702000 Total 1218000 Model XL: East region 4800 225 1080000 West region 5100 225 1147500 Total 2227500 Total revenue from sales 3445500Related Questions
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