Show me the steps to solve $6-48$ 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 $2021$ and has estimated sales based on past experience. Other information for the month of June follows: Input Prices

Direct materials

Cloth $$5\mathrm{.}25$ per yard

Wood $$7\mathrm{.}50$ per board foot

Direct manufacturing labor $$15$ per DMLH

Input Quantities per Unit of Output $($per Pair of Sandals$)$ Regular Deluxe

Direct materials

Cloth $1\mathrm{.}3$ yards $1\mathrm{.}5$ yards

Wood $0\mathrm{.}002$ b$.$f$.$

Direct manufacturing labor$-$hours $($DMLH$)5$ hours $7$ hours

Setup$-$hours per batch $2$ hours $3$ hours

Inventory Information, Direct Materials Cloth Wood

Beginning inventory $610$ yards $800$ b$.$f$.$

Target ending inventory $386$ yards $295$ b$.$f

Cost of beginning inventory $$3,219\mathrm{.}00$ $$6,060\mathrm{.}00$

Tyva accounts for direct materials using a FIFO cost$-$flow assumption. Regular Deluxe

Sales and Inventory Information, Finished Goods:

Expected sales in units $($pairs of sandals$)2000\mathrm{.}003000\mathrm{.}00$

Selling Price $$120\mathrm{.}00$ $$195\mathrm{.}00$

Target Ending Inventory in Units $400\mathrm{.}00600\mathrm{.}00$

Beginning Inventory in units $250\mathrm{.}00650\mathrm{.}00$

Beginning Inventory in dollars $$23,250\mathrm{.}00$ $$92,625\mathrm{.}00$

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 activity$-$based costing and has classified all overhead costs for the month of June as shown in the following chart:

Cost Type Denominator Activity Rate

Manufacturing:

Setup Setup hours $$18/$hr

Processing DMLH $1\mathrm{.}80/$DMLH

Inspection: number of pairs of sandals $$1\mathrm{.}35$ per pair

Operating $($nonmanufacturing$)$:

Marketing and general administration Sales revenue $8\%$

Sales Number of shipments $ $15$ per shipment $244$ CHAPTER $6$ MASTER BUDGET AND RESPONSIBILITY ACCOUNTING

Tyva's balance sheet for May $31$ follows.

Tyva Balance Sheet as of May $31$ Liabilities and Equity

Use the balance sheet and the following information to prepare a cash 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 follow$-$

ing 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 pur$-$

chase 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 $0\mathrm{.}5\%(6\%$ 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 ex$-$

pense for June is $$25,107,$ which will be paid in July. MBS Direct: Horngren's Cost Ac

Tyva's balance sheet for May $3$

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pense tor June IS $\frac{\text{\$}}{{?}_2},$ IUI, wnicn will de paIa in July.

$30\%$ of processing, setup, and inspection costs and $10\%$ of marketing and general administration and shipping costs are depreciation.

Open$/$Close Margin

Prepare a budgeted income statement for June and a budgeted balance sheet for Tyva as of June $30,2021.$

$244$

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Earnings upcoming

$7$:$28$ AM

$6/7/2024$ PLEASE HELP WITH STEPS $2$ AND $3$ CASH BUDGET AND INCOME STATEMENT. PLEASE SHOW DIRECT AND ACTUAL COMPUTATIONS.