Integrated Sales Budget,production Budget,and Purchases Budget Go-Spa Enterprises Is a Portable

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 2017.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.
Sales Price 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
2-person spa $1,250 500 500 400 600
4-person spa $2,600 200 100 100 200
Required:
a.Prepare Go-Spa's sales budget for 2017.
b.On December 31,2016,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 2018.Prepare the 2017 production budget for 2-person spas.
c.Each 2-person spa requires a pump motor,which Go-Spa purchases for $160.On December 31,2016,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 31,2017.Prepare the purchases budget for motors for 2017.