SoundLab Inc. manufactures two models of speakers, DL and XL. Based on the following production and sales data for November 2014,

SoundLab Inc. manufactures two models of speakers, DL and XL. Based on the following production and sales data for November 2014, prepare (a) a sales budget and (b) a production budget.










DL XL
Estimated inventory (units), November 1 . . . . . . . . . . . . . . . . . . . . . 270 85
Desired inventory (units), November 30 . . . . . . . . . . . . . . . . . . . . . . 315 55
Expected sales volume (units):
East Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,450 960
West Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,170 880
Unit sales price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $170 $280


Answer:



























a. SOUNDLAB INC.
Sales Budget
For the Month Ending November 30, 2014
Product and Area
Unit Sales
Volume
Unit Selling
Price Total Sales
Model DL:
East Region 2,450 $170 $ 416,500
West Region 2,170 170 368,900
Total 4,620 $ 785,400
Model XL:
East Region 960 $280 $ 268,800
West Region 880 280 246,400
Total 1,840 $ 515,200
Total revenue from sales $1,300,600

b. SOUNDLAB INC.
Production Budget
For the Month Ending November 30, 2014
Units
Model DL Model XL
Expected units to be sold 4,620 1,840
Plus desired inventory, November 30, 2014 315 55
Total 4,935 1,895
Less estimated inventory, November 1, 2014 (270) (85)
Total units to be produced 4,665 1,810