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Micro Products, Inc. Direct Materials Budget - Year 2 Quarter First Second Third Fourth Year Required production in calculators 64,000 94,000 154,000 104,000 84,000 Number of chips per calculator 4 4 4 4 4 Production needs-chips 256,000 376,000 616,000 416,000 336,000 Add: Ending inventory Total needs 256,000 376,000 616,000 416,000 336,000 Deduct: Beginning inventory Required purchases-chips Total cost of purchasesThe marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year. . Second . Fourth First Quarter Quarter Third Quarter Quarter Budgeted unit sales 17,100 16,100 15,100 16,100 The selling price of the company's product is $32.00 per unit. Management expects to collect 80% of sales in the quarter in which the sales are made and 15% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $77,000. The company expects to start the first quarter with 4,300 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 4,500 units. Required: 1-a.Compute the company's total sales. TotalSales $ 17,100 $ 16,100 $ 15,100 $ 16,100 $ 64,400 Add: Beginning inventory Add: Ending inventory Deduct: Beginning inventory Deduct: Ending inventory AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Cars Washed Unit (per car) 11,000 12,000 Sales Variable expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative Total variable expenses 0.00 0 0 Contribution margin $ 0.00 0 0 Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative Total fixed expenses 0 O Operating income $ 0 $ 01-b.Complete the schedule of expected cash collections. Accounts receivable, beginning balance Total cash collections 2. Prepare the company's production budget for the upcoming fiscal year. Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's costs: Fixed Cost Cost per per Car Month Washed Cleaning supplies $0.90 Electricity $ 3,300 0.30 Maintenance 0.50 Wages and salaries 6,600 0.60 Depreciation 10,200 Rent 4,000 Administrative 3,700 0.07 expenses The company expects to charge customers an average of $7.80 per car washed. Required: Prepare a flexible budget for October assuming either 11,000 or 12,000 cars are washed. Micro Products Inc. has developed a very powerful electronic calculator. Each calculator requires three small chips that cost $4 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 below: Year 2 Year 3 First Second Third Fourth First Budgeted production, In 64,000 94,000 154,000 104,000 84,000 calculators The chip used in 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. A total of 40,000 chips will be on hand to start the first quarter of year 2. Required: Prepare a direct materials purchases budget for chips, by quarter and in total, for year 2. At the bottom of your budget, show the dollar amount of purchases for each quarter and for the year in total. Required production in calculators 64,000 94,000 154,000 104,000 84,000 Production needschips 256,000 376,000 616,000 416,000 336,000 Graber Corporation Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted unit sales Total units needed 0 0 0 0 0 Required production 0 0 0 0 0