Harmony Audio Company manufactures two models of speakers, DLand XL. Based on the following production and sales data forSeptember 2016, prepare (a) a sales budget and (b) a productionbudget.
DL XL Estimated inventory (units), September 1 303 75 Desired inventory (units), September 30 348 65 Expected sales volume (units): East Region 4,300 3,800 West Region 5,650 4,900 Unit sales price $135 $215
a. Prepare a sales budget.
Harmony AudioCompany SalesBudget For the MonthEnding September 30, 2016 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 AudioCompany ProductionBudget For the MonthEnding September 30, 2016 Units Model DL Units Model XL Expected units to be sold Plus desired inventory, September 30,2016 Total Less estimated inventory, September 1,2016 Total units to be produced
Harmony Audio Company manufactures two models of speakers, DLand XL. Based on the following production and sales data forSeptember 2016, prepare (a) a sales budget and (b) a productionbudget.
| DL | XL | ||
| Estimated inventory (units), September 1 | 303 | 75 | |
| Desired inventory (units), September 30 | 348 | 65 | |
| Expected sales volume (units): | |||
| East Region | 4,300 | 3,800 | |
| West Region | 5,650 | 4,900 | |
| Unit sales price | $135 | $215 |
a. Prepare a sales budget.
| Harmony AudioCompany | |||
| SalesBudget | |||
| For the MonthEnding September 30, 2016 | |||
| 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 AudioCompany | ||
| ProductionBudget | ||
| For the MonthEnding September 30, 2016 | ||
| Units Model DL | Units Model XL | |
| Expected units to be sold | ||
| Plus desired inventory, September 30,2016 | ||
| Total | ||
| Less estimated inventory, September 1,2016 | ||
| Total units to be produced | ||
Related questions
Factory Overhead Cost Budget
Sweet Tooth Company budgeted the following costs for anticipatedproduction for August:
| Advertising expenses | $259,400 |
| Manufacturing supplies | 14,220 |
| Power and light | 42,400 |
| Sales commissions | 290,020 |
| Factory insurance | 24,690 |
| Production supervisor wages | 124,710 |
| Production control wages | 32,420 |
| Executive officer salaries | 264,390 |
| Materials management wages | 35,670 |
| Factory depreciation | 20,210 |
Prepare a factory overhead cost budget, separating variable andfixed costs. Assume that factory insurance and depreciation are theonly fixed factory costs.
| SweetTooth Company | ||
| Factory Overhead Cost Budget | ||
| Forthe Month Ending August 31 | ||
| Variable factory overhead costs: | ||
| Manufacturingsupplies | $ | |
| Power and light | ||
| Production supervisorwages | ||
| Production controlwages | ||
| Materials managementwages | ||
| Total variable factory overhead costs | $ | |
| Fixed factory overhead costs: | ||
| Factory insurance | $ | |
| Factory depreciation | ||
| Total fixed factory overhead costs | ||
| Total factory overhead costs | $ | |
2.
Sales and Production Budgets
Sonic Inc. manufactures two models of speakers, Rumble andThunder. 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 | 278 | 77 | |
| Desired inventory (units), June 30 | 319 | 67 | |
| Expected sales volume (units): | |||
| East Region | 4,100 | 4,600 | |
| West Region | 5,000 | 4,350 | |
| Unit sales price | $115 | $185 |
a. Prepare a sales budget.
| SonicInc. | |||
| SalesBudget | |||
| Forthe Month Ending June 30 | |||
| Product and Area | Unit Sales Volume | Unit Selling Price | Total Sales |
| Model Rumble: | |||
| East Region | $ | $ | |
| West Region | |||
| Total | $ | ||
| Model Thunder: | |||
| East Region | $ | $ | |
| West Region | |||
| Total | $ | ||
| Total revenue from sales | $ | ||
Ultimate Audio Company manufactures two models of speakers, U500 and S1000. Based on the following production and sales data for June.
| U500 | S1000 | ||
| Estimated inventory (units), June 1 | 300 | 95 | |
| Desired inventory (units), June 30 | 345 | 83 | |
| Expected sales volume (units): | |||
| Northeast Region | 4,400 | 4,950 | |
| Southwest Region | 5,450 | 6,150 | |
| Unit sales price | $135 | $190 |
a. Prepare a A budget that indicates for each product (1) the quantity of estimated sales, and (2) the expected unit selling price.sales budget. Enter all amounts as positive numbers.
| ULTIMATE AUDIO COMPANY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales Budget | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the Month Ending June 30
b. Prepare a production budget. Enter all amounts as positive numbers.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and Production Budgets Sonic Inc. manufactures two modelsof speakers, Rumble and Thunder. Based on the following productionand sales data for June, prepare (a) a sales budget and (b) aproduction budget. Rumble Thunder Estimated inventory (units), June1 278 77 Desired inventory (units), June 30 319 67 Expected salesvolume (units): East Region 4,100 4,600 West Region 5,000 4,350Unit sales price $115 $185 a. Prepare a sales budget. Sonic Inc.Sales Budget For the Month Ending June 30 Product and Area UnitSales Volume Unit Selling Price Total Sales Model Rumble: EastRegion $ $ West Region Total $ Model Thunder: East Region $ $ WestRegion Total $ Total revenue from sales $
2.
Personal Budget
At the beginning of the school year, Katherine Malloy decided toprepare a cash budget for the months of September, October,November, and December. The budget must plan for enough cash onDecember 31 to pay the spring semester tuition, which is the sameas the fall tuition. The following information relates to thebudget:
| Cash balance, September 1 (from a summer job) | $6,350 |
| Purchase season football tickets in September | 90 |
| Additional entertainment for each month | 220 |
| Pay fall semester tuition in September | 3,400 |
| Pay rent at the beginning of each month | 310 |
| Pay for food each month | 170 |
| Pay apartment deposit on September 2 (to be returned December15) | 400 |
| Part-time job earnings each month (net of taxes) | 790 |
a. Prepare a cash budget for September,October, November, and December. Enter all amounts as positivevalues except an overall cash decrease which should be indicatedwith a minus sign.
| KATHERINE MALLOY | ||||
| CashBudget | ||||
| Forthe Four Months Ending December 31 | ||||
| September | October | November | December | |
| Estimated cash receipts from: | ||||
| Part-time job | $ | $ | $ | $ |
| Deposit | ||||
| Total cash receipts | $ | $ | $ | $ |
| Estimated cash payments for: | ||||
| Season football tickets | $ | |||
| Additional entertainment | $ | $ | $ | |
| Tuition | ||||
| Rent | ||||
| Food | ||||
| Deposit | ||||
| Total cash payments | $ | $ | $ | $ |
| Overall cash increase (decrease) | $ | $ | $ | $ |
| Cash balance at beginning of month | ||||
| Cash balance at end of month | $ | $ | $ | $ |
