Information for this problem.

Tyva makes a very popular undyed cloth sandal in one style, but in Regular and Deluxe. The regular sandals have cloth soles and Deluxe sandals have cloth-covered wooden soles.

Tyva is preparing its budget for June 2015 and has estimated sales based on past experience.

Input prices

Direct Materials

Cloth $5.25 per yard and Wood at $7.50 per board foot

Direct Manufacturing labor $15 per direct manufacturing labor-hour

Input Quantities per Unit of Output (per pair of sandals)

Direct Materials

Cloth 1.3 yards (Regular sandals) Cloth 1.5 yards (Deluxe Sandals)

Wood 0 (Regular sandals) Wood 2 b.f. (Deluxe sandals)

Direct Manufacturing labor hours (DMLH) 5 hours (Regular sandals) 7 hours (deluxe sandals)

Set-up hours per batch 2 hours (Regular sandals) 3 hours (Deluxe sandals)

Inventory Information, Direct Materials

Beginning Inventory (Cloth) 610 yards (Wood) 800 b.f.

Target ending inventory (Cloth) 386 yards (Wood) 295 b.f.

Cost of beginning inventory (Cloth) $3,219 (Wood) $6,060

Tyva accounts for direct materials using a FIFO cost flow assumption.

Sales and Inventory Information, Finished Goods

Expected sales in units (pairs of sandals) (Regular sandals) 2,000 (Deluxe sandals) 3,000

Selling price (Regular) $120 Deluxe ($195)

Target ending inventory in units (Regular) 400 (Deluxe) 600

Beginning inventory in units (Regular) 250 (Deluxe) 650

Beginning inventory in dollars (Regular) $23,250 (Deluxe) $92,625

Tyva uses 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 costs include setup, processing, and inspection costs. Tyva ships 40 pairs of sandals per shipment. Tyva uses activitybased costing and has classified all overhead costs for the month of June as shown in the following chart:

Manufacturing

Setup (Cost Type) Set-up hours (Denominator Activity) $18 per set up hr (Rate)

Processing (Cost Type) Direct manufacturing labor hours (D. Activity) $1.80 per DMLH (Rate)

Inspection (Cost Type) Number of pais of sandals (D. Activity) $1.35 per pair (Rate)

Nonmanufacturing

Marketing andGeneral Admin (Cost Type) Sales Revenue ( D. Activity) 8% (Rate)

Shipping (Cost Type) # of shipments (D. Activity) $15 per shipment (Rate)

1) Using the information provided prepare each of the following for June:

a. Revenues budget

b.Production budget in units

c. Direct Material usage budget and Direct Material purchase budget in both units and dollars;

(round to dollars)

d. Direct Manufacturing labor cost budget

e. Manufacturing overhead cost budgets for setup, processing, and inspection

f. Budgeted unit cost of ending finished goods inventory and ending inventories budget.

g. Cost of goods sold budget.

h. Marketing and General Admin. and shipping costs budget.

2)Tyva's balance sheet for May 31 follows.

Assets:

Cash $9,435

A/R $324,000

Less: Allowance for bad debts $16,200

Inventories:

Direct Materials $9,279

Finished Goods $115,875

Fixed Assets $870,000

Less Accumulated Depreciation $136,335

Total Assets: $1,176,054

Liabilities and Equity

A/P $15,600

Taxes Payable $10,800

Interest Payable $750

Long Term Debt $150,000

Common Stock $300,000

Retained Earnings $698,904

Total Liabilities and equity $1,176,054

Using the balance sheet and the following information to prepare a cahs budget

for Tyva for June. Round to dollars.

- All sales are on account; 60% are collected in the month of the sale, 38% are collected the

following month, and 2 % are never collected and written off as bad debts.

- All purchases of materials are on account. Tyva pays for 80% of purchases in the month of

purchase and 20% in the following month.

- All other costs are paid in the month incurred, including the declaration and payment of a

$15,000 cash dividend in June.

- Tyva is making monthly interest payments of 0.5% (6% per year) on a $150,000 long term loan.

-Tyva plans to pay the $10,800 of taxes owed as of May 31 in the month of June. Income tax

expense for June is zero.

- 30% of processing, setup, and inspection costs and 10% of marketing and general administration

and shipping costs are depreciation.

3) Prepare a budgeted income statement for June and a budgeted balance sheet for Tyva as of June 30,2105.

**** This is the third time I've submitted this question hopefully someone can help!