Input prices and input quantities Balance Sheet 1. Prepare each of the following for June. a. Revenues budget b. Production budget in units c. Direct material usage budget and direct materials purchases budget in both units and dollars d. Direct manufacturing labour cost budget e. Manufacturing overhead cost budgets for setup, processing, and inspection activities f. Budgeted unit cost of ending finished-goods inventory and ending inventories budget g. Cost of goods sold budget h. Marketing and general administration and shipping costs budget 2. Use the balance sheet and the following information to prepare a cash budget for Tulley Lake for June. - All sales are on account; 60% are collected in the month of the sale, 37% are collected the following month, and 3% are never collected and written off as bad debts. - All purchases of materials are on account. Tulley Lake pays for 70% of purchases in the month of purchase and 30% in the following month. - All other costs are paid in the month incurred, including the declaration and payment of a $13,000 cash dividend in June. - Tulley Lake is making monthly interest payments of 1% ( 12% per year) on a $165,000 long-term loan. - Tulley Lake plans to pay the $11,400 of taxes owed as of May 31 in the month of June. Income tax expense for June is zero (\$0). - 25% of processing, setup, and inspection costs and 5% of marketing and general administration, and shipping costs are depreciation. 3. Prepare a budgeted income statement for June and a budgeted balance sheet for Tulley Lake as of June 30 . Balance Sheet All the sandals are made in batches of 50 pairs of sandals. Tulley Lake incurs manufacturing overhead costs, marketing and general administration, and shipping costs. Besides materials and labour, manulacturing costs include setup, processing, and inspection costs. Tulley Lake ships 40 pairs of sandals per shipment. Tulley Lake uses activity-based costing and has classified all overhead costs for the month of June as shown in the following chart: Tulley Lake 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. Tulley Lake is preparing its budget for June and has estimated sales based on past experience. Tulley Lake accounts for direct materials using a FIFO cost-flow assumption and uses a FIFO cost-flow assumption for finished-goods inventory. Other information for the month of June follows: (Click the icon to view the input prices and input quantities per unit of output.) (Click the icon to view the direct materials and finished goods information.) (Click the icon to view the additional information.) (Click the icon to view the balance sheet.) Requirement 1a. Prepare the revenues budget for June. Direct materials and finished goods
