This year (year 0) elizabeth agreed to a three-year service contract with an engineering consulting firm to improve efficiency in her factory. the contract requires elizabeth to pay the consulting firm $1,500 for each instance that elizabeth requests their assistance. the contract also provides that elizabeth only pays the consultants if their advice increases efficiency as measured 12 months from the date of service. this year elizabeth requested advice on three occasions and she has not yet made any payments to the consultants. (leave no answers blank. enter zero if applicable.)
how much should elizabeth deduct in year 0 under this service contract if she uses the accrual method of accounting?

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)