A company has budgeted production for next year as follows:Q…

A company has budgeted production for next year as follows:QuarterFirstSecondThirdFourthRequired production (units)45,00038,00034,00048,000Each unit of product requires three pounds of direct material. The company’s policy is to begin each quarter with an inventory of direct materials equal to 30% of that quarter’s direct material requirements. zBudgeted direct materials purchases for the third quarter would be: 

In a sell or process further decision, consider the followin…

In a sell or process further decision, consider the following costs: I.   A variable production cost incurred prior to split-off. II.  A variable production cost incurred after split-off. III. An avoidable fixed production cost incurred after split-off. Which of the above costs is (are) not relevant in a decision regarding whether the product should be processed further?

A company has budgeted sales in units for the next five mont…

A company has budgeted sales in units for the next five months as follows: June 4,630 units July 7,750 units August 5,430 units September 6,960 units October 3,830 units Past experience has shown that the ending inventory for each month must be equal to 20% of the next month’s sales in units. The company needs to prepare a production budget for the third quarter of the year and will start with the July budget. The total number of units to be produced in July is:

A company has a minimum required rate of return of 10%. The…

A company has a minimum required rate of return of 10%. The company is considering investing in a factory machine, which costs $100,000 and has an expected life of 5 years. The machine has a zero salvage value and will be depreciated using the straight-line depreciation method. The company expects to generate an extra $24,000 of annual cash flows each of the next 5 years because of this new factory machine. How much extra net income will the company earn each of the 5 years?Show the numbers you use to calculate your answer.