1.)

Micro Products, Inc., has developed a very powerful electronic calculator. Each calculator requires three small chips that cost $9 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 calculators	59,000	89,000	157,000	95,000		74,000

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 stockouts. For this reason, the inventory of chips at the end of a quarter must equal 15% of the following quarters production needs. A total of 26,550 chips will be on hand to start the first quarter of Year 2.

Required:

Prepare a direct materials budget for chips, by quarter and in total, for Year 2. (Do not round intermediate calculations. Input all amounts as positive values. Omit the "$" sign in your response.)

Micro Products, Inc. Direct Materials Budget - Year 2
	Quarter
	First	Second	Third	Fourth	Year
Production needschips
(Click to select)AddDeduct: (Click to select)Beginning inventoryEnding inventory
Total needs
(Click to select)DeductAdd: (Click to select)Ending inventoryBeginning inventory
Required purchaseschips
Total cost of purchases	$	$	$	$	$

Please walk me through the steps, I can not figure out how to get past where I am.

2.)

Midwest Products is a wholesale distributor of leaf rakes. Thus, peak sales occur in August of each year as shown in the companys sales budget for the third quarter, given below:

	July	August	September	Total
Budgeted sales (all on account)	$587,000	$ 837,000	$ 458,000	$1,882,000

From past experience, the company has learned that 20% of a months sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. May sales totaled $405,000, and June sales totaled $533,000.

3.A)	Prepare a schedule of expected cash collections from sales, by month and in total, for the third quarter. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Schedule of Expected Cash Collections
	July	August	September	Total
May sales	$	$	$	$
June sales
July sales
August sales
September sales
Total cash collections	$	$	$	$

Required information

3.b)	Assume that the company will prepare a budgeted balance sheet as of September 30. Compute the accounts receivable as of that date. (Do not round intermediate calculations. Omit the "$" sign in your response.)

Total accounts receivable

$