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Author Question: Go-Spa Enterprises is a portable hot tub manufacturer. The company produces both 2-person and ... (Read 27 times)

krabuske

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on: Feb 5, 2023
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 2021. 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.

​​Units
​​Sales Price1st Quarter2nd Quarter3rd Quarter4th Quarter
 2-person spa$1,250500500400600
 4-person spa$2,600200100100200
Required:

a.Prepare Go-Spa's sales budget for 2021. Omit the heading.
b.On December 31, 2020, 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 2022. Prepare the 2021 production budget for 2-person spas. Omit the heading.

c.Each 2-person spa requires a pump motor, which Go-Spa purchases for $160. On
December 31, 2020, 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, 2021. Prepare the purchases budget for motors for 2021.
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by krabuske on Feb 5, 2023

butterfly17

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Reply #1 on: Feb 5, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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krabuske

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Reply 2 on: Feb 5, 2023
Excellent

essyface1

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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