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 | 253 | | 70 |
| Desired inventory (units), September 30 | 291 | | 61 |
| Expected sales volume (units): | | | |
| East Region | 3,500 | | 3,900 |
| West Region | 4,800 | | 4,200 |
| Unit sales price | $100 | | $225 |
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 | | $ | $ |
| West Region | | | |
| Total | | | $ |
| Model XL: | | | |
| East Region | | $ | $ |
| West Region | | | |
| Total | | | $ |
| Total revenue from sales | | | $ |
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 | | |
| Plus desired inventory, September 30, 2016 | | |
| Total | | |
| Less estimated inventory, September 1, 2016 | | |
| Total units to be produced | | |
