Math Help
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 2016, prepare (a) a sales budget and (b) a production budget.
| DL | XL | ||
| Estimated inventory (units), September 1 | 262 | 64 | |
| Desired inventory (units), September 30 | 301 | 56 | |
| Expected sales volume (units): | |||
| East Region | 3,750 | 3,300 | |
| West Region | 4,850 | 4,200 | |
| Unit sales price | $145 | $195 |
a. Prepare a sales budget.
| Harmony Audio Company | |||
| Sales Budget | |||
| For the Month Ending September 30, 2016 | |||
| Product and Area | Unit Sales Volume | Unit Selling Price | Total Sales |
| Model DL: | |||
| East Region | [removed] | $[removed] | $[removed] |
| West Region | [removed] | [removed] | [removed] |
| Total | [removed] | $[removed] | |
| Model XL: | |||
| East Region | [removed] | $[removed] | $[removed] |
| West Region | [removed] | [removed] | [removed] |
| Total | [removed] | $[removed] | |
| Total revenue from sales | $[removed] | ||
b. Prepare a production budget.
| Harmony Audio Company | ||
| Production Budget | ||
| For the Month Ending September 30, 2016 | ||
| Units Model DL | Units Model XL | |
| Expected units to be sold | [removed] | [removed] |
| Plus desired inventory, September 30, 2016 | [removed] | [removed] |
| Total | [removed] | [removed] |
| Less estimated inventory, September 1, 2016 | [removed] | [removed] |
| Total units to be produced | [removed] | [removed] |
