Respuesta :
Answer:
Explanation:
Budgeting is the process of creating a spending plan. This helps you determine whether you will have enough to meet your financial commitments. It is the preparing a budget in order to organize future actions/ plans.
A sales budget is a projection of future sales and expected revenues.
The objective of a sales budget is to plan for and control the expenditure of resources. It is also to achieve the projections and objectives of made by the sales department in order to keep the entity as a profitable going concern.
Sonic Inc
Sales Budget
For the month ending June 30
Details unit sales volume unit selling price Total sales
Model R: ($) ($)
East region 12, 000 160 1, 920, 000
Wet region 14, 000 160 2, 240, 000
Total 26, 000 4, 160, 000
Model T
East region 3, 500 200 700, 000
West region 4, 000 200 800, 000
Total 7, 500 1, 500, 000
Total revenue from sales 5, 660, 000
A Production budget is prepared in order to show the quantities of units that need to be produced in order to meet the sales and inventory budget.
Sonic Inc
Production Budget
For the month ending June 30
Units Model Rumble Units Model Thunder
Expected units to be sold 26, 000 7, 500
Plus, desired at 30 June 500 250
Total units required 26, 500 7, 750
Less, estimated inventory on 1 June -750 -250
Total units to be produced 25, 750 7, 500
Answer and Explanation:
a. Prepare a sales budget.
Unit
Sales
Volume Unit Selling price Total Sales
Model Rumble:
East region 12000 160 1920000
West region 14000 160 2240000
Total 4160000
Model Thunder:
East region 3500 200 700000
West region 4000 200 800000
Total 1500000
Total revenue from sales 5660000
b. Prepare a production budget.
Units Model Rumble Units Model Thunder
Expected units to be sold 26000 7500
Add: Desired ending inventory 500 250
Total units required 26500 7750
Less: Beginning inventory (750) (300)
Total units to be produced 25750 7450
