4.. Micro Products Inc. has developed a very powerful electronic calculator. Each calculator requires three small “chips" that cost $2 each and are purchased from an overseas supplier. Micro Products has prepared a production budget for the calculator by quarters for year 2 and for the first quarter of year 3, as shown here: Year 2 Year 3 Q1 Q1 Q2 Q3 Q4 Required production in 60,000 units 90,000 150,000 100,000 80,000 The chip used in the production of the calculator is sometimes hard to get, so it is necessary to carry large inventories as a precaution against stock outs. For this reason, the inventory of chips at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 36,000 chips will be on hand to start the first quarter of Year 2. Purchases of raw material are paid for in the following patter: 30% paid in the quarter the purchases are made,30% paid in the following quater and the remaining 40% paid in the second following quarter of sales. There is no accounts payable is outstanding at the beginning of the first quarter of Year 2; the amount will be paid in the first quarter of year 2. Required: a. Prepare a direct material budget by quarter for Year 2. b. Prepare a schedule of cash disbursement by quarter for Year 2.

The Charmatz Corporation has a central copying facility. Its offices can supply up to 800,000 copies per year. The copying facility has only two users, Department A and Department B. The following data apply to the coming budget year: Budgeted costs of Copy Support Department are:        Fixed costs per year            $70,000   per year        Variable costs                           $0.02  per copy The operating departments have estimated their usage as follows:        Department A                        120,000 copies        Department B                        480,000 copies Actual usage for the year was:         Department A                        150,000 copies         Department B                        450,000 copies Budgeted amounts are used to calculate the allocation rates. Actual usage is used to allocate costs under the single-rate method. Actual usage is used to allocate variable costs and budgeted usage is used to allocate fixed costs under the dual-rate method. How will…

Teletronics is going to introduce a combination​ phone/tablet product. Design and testing will take 8 months. Teletronics expects to sell 24,000 units during the first 6 months of sales. Sales over the next 12 months are expected to be less robust at 20,000. ​And, sales in the final 6 months of the expected life cycle are expected to be 9,000. Teletronics is budgeting for this product as​ follows: LOADING... ​(Click the icon to view the cost​ information.)   Read the requirements LOADING... .   Requirement 1. If Teletronics prices the​ phone/tablets at $280 ​each, how much operating income will the company make over the​ product's life​ cycle? What is the operating income per​ unit?   Begin by preparing the life cycle income statement in order to determine how much operating income the company will make over the​ product's life cycle.   Projected Life Cycle Income Statement Revenues   Variable costs:   Months 9-14   Months 15-26…

Vaughn Chemicals has developed a new window cleaner that requires two ingredients, AM972 and CA38. Based on forecasted sales, Vaughn has developed the following budgeted production for the coming year.       1st Quarter   2nd Quarter   3rd Quarter   4th Quarter   1st QuarterNext Year     Forecasted production (gallons)   5,000   7,000   9,000   12,500   6,000   Each gallon of window cleaner requires 100 ounces of AM972 and 28 ounces of CA38. An ounce of AM972 costs Vaughn $0.15. An ounce of CA38 costs the company $0.25. Vaughn's inventory policy requires ending inventory equal to 20% of the next quarter's production needs. At the beginning of the year, Vaughn expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 on hand.Prepare Vaughn's AM972 purchases budget for the coming year. (Enter price per ounce to 2 decimal places, e.g. 0.35.)       1st Quarter   2nd Quarter   3rd Quarter   4th Quarter   Annual     select an opening purchase…

3. Given: Your boss has asked you to investigate purchasing new machines for a processing line. The demand is 225,000 units/year, and the plant operates for 2080 hrs per year with a desired capacity cushion of 18%.implement to improve planting efficiency. You have found two machines that will fit your needs: 1. Machine 1 produces 60 units/hr, costs $225,000, and lasts 10 years. 2. Machine 2 produces 40 units/hr, costs $245,000, and lasts 20 years. Assume i= 8.0% and the salvage value is $0. Ignore taxes and depreciation Find: a. How many of machine 1 would be required? b. How many of Machine 2 would be required? c. What is the best choice based on engineering economics?