$\textbf{ Integrated sales budget,production budget,and purchases budget }$

$\textbf{ Integrated sales budget,production budget,and purchases budget }$  Go-Spa Enterprises is a portable hot tub manufacturer.The company produces both 2-person and 4-person hot tubs.John Ireland the company's sales manager,prepared the following sales forecast for 2015.The forecasted sales prices include a 5 percent increase in the 2-person spa price and a 10 percent increase in the 4-person spa price,to cover anticipated increases in raw materials prices.
$$\begin{array}{lcccc}& \underline{\textbf{Sales Price}} & \underline{\textbf{1st Quarter}} & \underline{\textbf{2nd Quarter}} & \underline{\textbf{3rd Quarter}} & \underline{\textbf{4th Quarter}} \\\text{2-person spa} & \$1,250 & 500 & 500 & 400 & 600 \\\text{4-person spa} & \$2,600 & 200 & 100 & 100 & 200 \\\end{array}$$
Required:

a. Prepare Go-Spa’s sales budget for 2015.
b. On December 31, 2014, Go-Spa had 80 2-person spas in stock—fewer than the desired inventory level of 100, based on the following quarter’s sales. The company has budgeted for sales of 450 2-person spas in the first quarter of 2016. Prepare the 2015 production budget for 2-person spas.
c. Each 2-person spa requires a pump motor, which Go-Spa purchases for $160. On December 31, 2014, Go Spa had 400 pump motors in inventory. Damage during the installation process results in a standard quantity of 1.2 motors per spa. Because of recent delivery problems, Go-Spa wants to maintain an ending inventory equal to 50 percent of the following quarter’s production needs. Since the supplier has assured Go-Spa that the delivery issues will be resolved by the end of December, Go-Spa wants only 300 motors in inventory on December 31, 2015. Prepare the purchases budget for motors for 2015.