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6-48 Comprehensive budgeting problem, activity-based costing, operating and financial budgets. Tyva makes a very popular undyed cloth sandal in one style, but in Regular and Deluxe. The Regular sandals have cloth soles and the Deluxe sandals have cloth-covered wooden soles. Tyva is preparing its budget for June 2018 and has estimated sales based on past experience Other information for the month of June follows: Input Prices Direct materials Cloth Wood Direct manufacturing labor $5 25 per yard 57 50 per board foot $15 per direct manufacturing labor-hour Deluxe Input Quantities per Unit of Output (per pair of sandals) Regular Direct materials Cloth 1.3 yards Wood 0 Direct manufacturing labor hours (DMLH) 5 hours Setup-hours per batch 2 hours 1.5 yards 26.1. 7 hours 3 hours Wood Inventory Information Direct Materials Cloth Beginning inventory 610 yards Target ending inventory 386 yards Cost of beginning inventory $3,219 800 b.f. 295 b.1. $6,060 Tyva accounts for direct materials using a FIFO cost-flow assumption, Sales and Inventory Information, Finished Goods Regular Deluxe Expected sales in units (pairs of sandals) 2,000 3,000 Selling price $ 120 $ 195 Target ending inventory in units 400 600 Beginning inventory in units 650 Beginning inventory in dollars $23,250 $92,625 Tha unes a FIFO cost-flow assumption for finished goods inventory All the sandals are made in batches of 50 pairs of sandals. Tyva incurs manufacturing overhead costs, marketing and general administration, and shipping costs. Besides materials and labor, manufacturing sont include setup, processing, and inspection costs. Tyva ships 40 pairs of sandals per shipment. Tyva 250 $15 per how er it be conting and has come towerhead costs for the month of June as she is following chart Cost Type De Activity Mechaning Setup Setup hours Processing Drect anulaturing labour DMUO 31 per DMLH Inspection Number of pain of sandale $1.35 per pair Norman tacturing Marketing and general de Sales Number of the 5 15 per shit Shoping 1. Prepare each of the following for June Revenues budget Production budget in units e Direct material usage budget and retail or be in ons and dollaround to dollars Direct manufacturing labor cost budget Manufacturing overhead cost budgets for processes and pection activities 1 Budgeted unit cost of ending finished goods story and its budget Cost of goods sold budget Marketing and general detonando costo 2. Ty balance sheet for May 31 follows Tyra Balance Sheets of May 31 Assets Cash 5 OS Accounts receivable $0.00 Les Allowance for bad debts 15.00 301.800 Inventones Direct materials 9,279 Finished goods 115,875 Fixed assets S70.000 Less: Accumulated depreciation 136305 733.66 Total assets 51 175056 Liabilities and Equity Accounts payable $15.500 Taxes payable 10,800 Interest payable 750 Long-term debe 150,000 Common stock 300.000 Retained earnings 698, 904 Total liabilities and equity $1,176,054 Use the balance sheet and the following information to prepare a cash budget for Tyve for June, Round to dollars. All sales are on account 60% are collected in the month of the sale, 38 are collected the follow- ing month, and are never collected and written of as bad debts All purchases of materials are on account. Tyva pays for B0% of purchases in the month of our chase and 20% in the following month Alcthar costs are paid in the month incurred, including the declaration and payment of a $15.000 cash dividend in June Thais making monthly interest payments of 5% per year on a $150,000 long-term loan Tywa plans to pay the S10.800 of taxes owed as of May 31 is the month of June Income taxe pense for June is zero . 30% of processing, setup, and inspection costs and 10% of marketing and general administration and shipping costs are depreciation 1 Prepare a budgeted income tutture and a budgeted balance sheet for Tys as of June 30, 2018

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