The following information has been prepared for Tom Limited for the six months to 30 September 2011: Budgeted production levels for product X
Units
April 140
May 280
June 700
July 380
August 300
September 240

Product X uses two units of component A6 and three units of component B9. On 1 April 2011 there were expected to be 100 units of A6 in stock, and 200 units of B9. The desired closing stock levels of each component were as follows:
Month-end 2011 A6 B9
(units) (units)
30 April 110 250
31 May 220 630
30 June 560 340
31 July 300 300
31 August 240 200
30 September 200 180

During the six months to 30 September 2011, component A6 was expected to be purchased at a cost of £5 per unit, and component B9 at a cost of £10 per unit.

Required:
Prepare the following budgets for each of the six months to 30 September 2011:
(a) direct materials usage budget
(b) direct materials purchase budget.

Anew equipment has been proposed by engineers to increase the productivity of a certain manual welding operation. the investment cost is $25,000, and the equipment will have a market value of $5,000 at the end of a study period of five years. increased productivity attributable to the equipment will amount to $10,000 per year after operating costs have been subtracted from the revenue generated by the additional production. if marr is 10%, is investing in this equipment feasible? use annual worth method.

Chance company had two operating divisions, one manufacturing farm equipment and the other office supplies. both divisions are considered separate components as defined by generally accepted accounting principles. the farm equipment component had been unprofitable, and on september 1, 2018, the company adopted a plan to sell the assets of the division. the actual sale was completed on december 15, 2018, at a price of $600,000. the book value of the division’s assets was $1,000,000, resulting in a before-tax loss of $400,000 on the sale. the division incurred a before-tax operating loss from operations of $130,000 from the beginning of the year through december 15. the income tax rate is 40%. chance’s after-tax income from its continuing operations is $350,000. required: prepare an income statement for 2018 beginning with income from continuing operations. include appropriate eps disclosures assuming that 100,000 shares of common stock were outstanding throughout the year. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)

For each of the following users of financial accounting information and managerial accounting information, specify whether the user would primarily use financial accounting information or managerial accounting information or both: 1. sec examiner 2. bookkeeping department 3. division controller 4. external auditor (public accounting firm) 5. loan officer at the company's bank 6. state tax agency auditor 7. board of directors 8. manager of the service department 9. wall street analyst 10. internal auditor 11. potential investors 12, current stockholders 13. reporter from the wall street journal 14. regional division managers