Ultimate Audio Company manufactures two models of speakers, U500 and S1000. Base
ID: 2578843 • Letter: U
Question
Ultimate Audio Company manufactures two models of speakers, U500 and S1000. Based on the following production and sales data for June.
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.
For the Month Ending June 30
$
b. Prepare a production budget. Enter all amounts as positive numbers.
For the Month Ending June 30
Expected units to be sold
Plus desired inventory, June 30
Total
Less estimated inventory, June 1
Total units to be produced
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
Explanation / Answer
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 Product and Area Unit Sales Volume Unit Sales Price Total Sales Model U500: Northeast Region 4400 $135.00 $594,000.00 Southwest Region 5450 $135.00 $735,750.00 Total 9850 $1,329,750.00 Model S1000: Northeast Region 4950 $190.00 $940,500.00 Southwest Region 6150 $190.00 $1,168,500.00 Total 11100 $2,109,000.00 Total revenue from sales $3,438,750.00 b. Prepare a production budget. Enter all amounts as positive numbers. ULTIMATE AUDIO COMPANY Production Budget For the Month Ending June 30 Model U500 Model S1000 Expected units to be sold 9850 11100 Plus desired inventory, June 30 345 83 Total 10195 11183 Less estimated inventory, June 1 -300 -95 Total units to be produced 9895 11088
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