Tyva, your employer, makes a very popular undyed cloth sandal in one style, but in Regular and Deluxe. Your colleague has started to put together the master budget for the Regular cloth sandal for June 2021, having completed the sales budget, the production budget, and the MOH Budget, but then got called away to work on another project. Your colleague has asked you to help out and prepare the Direct Materials Budget, the Direct Labor Budget, and the Ending Inventories Budget. Below you will find relevant information as well as the master budget document that your colleague started. The Regular sandals have cloth soles; cloth is the only direct material required for the Regular sandals. The price for this direct material is $5.25 per yard. The wage rate for direct manufacturing labor is $15 per direct manufacturing labor hour. Each pair of regular sandals requires 1.3 yards of cloth per pair of sandals (the unit of output) and 5 direct manufacturing labor hours. Tyva expects to have 610 yards of cloth in its beginning inventory in June and 386 yards of cloth in its ending inventory at the end of the month. The company uses the weighted average method for finished-goods inventory and does not plant to have a balance in WIP at month-end. All assumptions related to MOH are included in the budget template on the MOH budget tab. All assumptions related to MOH are included in the budget template on the MOH budget tab. Required: Prepare the Direct Materials Budget, Direct Labor Budget, and Ending Inventories Budget in the Excel template and resubmit it here as an attachment. Master Budget Template Paragraph BI U : B D 2,000 120 240,000 A 1 Sales Budget 2 3 Budgeted unit sales (pairs of sandals) 4 Selling price per pair $ 5 Total Sales $ 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Sales Budget Production Budget Direct Materials Budget Direct Labor Budget MOH Budget En B A 1 Production Budget 2 3 Budgeted Sales - Pairs of Sandals 4 Add Desired ending inventory of finished goods 5 Total Needs 6 Less beginning inventory of finished goods 7 Required production - Pairs of Sandals 8 2,000 400 2,400 250 2,150 10 11 12 13 14 15 16 17 18 Sales Budget Production Budget Direct Materials Budget Direct Labor Budget MOH Budget Ending li... c 4 Units of raw materials needed per unit of finished goods 5 Production needs (units) 6 Add Desired units of ending inventory of raw materials 7 Total units of raw materials needed Bless units of beginning inventories of raw materials 9 Units of raw materials to be purchased 10 Unit cost of raw materiais 11 Cost of raw materials to be purchased 12 13 14 15 16 17 18 19 20 21 Port Direct Materials Budget bredt bordot MOH Budgeting B D E Direct Labor Budget 2 3 Budgeted production 4 Direct labor hours per unit 5 Total labor hours required 6 Hourly wage rate 7 Budgeted total direct labor costs 8 $ 10 11 12 13 14 15 16 17 18 Sales Budget Production Budget Direct Materials Budget Direct Labor Budget MOH Budget Ending 1 Manufacturing Osts budset 3 Machine setup 43 batches x 2 hours/batch x $18/setup hour 1,548 Processing 10,750 direct labor hours x $1.80/hr 19,350 Inspection 2,150 pairs of shoes x $1.35/pair Total budgeted manufacturing overheats 2,903 $ 23,800.50 NOTES: 1. All sandals are made in batches of 50 pairs of sandals. Budgeted batches = 2,150 pairs of sandals / 50 pairs per batch 43. 2. Tyva uses ABC and classifies its manufacturing costs based on the following activities, machine setup, processing, and inspection 3. The following activity rates are used for each respective activity: $18/setup hour, $1,80 per direct labor hour, and $1.35 per pair of sandals produced Required machine setup time is 2 hours per batch. 1 Ending Inventories Budget 2 Cost per unit of input Input per unit of output Total 3 4 Direct materials 5 Direct labor 6. MOH - Machine setup 7 MOH - Processing 8 MOH - Inspection 9 Total Cost Per Unit 10 11 $ - Cost per 12 Quantity Unit Total 13 Direct Materials - Cloth 14 Finished Goods Inventory 15 Total Ending Inventory $ 16 17 MOH Budget Ending Inventories Budget COGS Budget Nonmanuf Costs Budgeted Income Statement Prior budget S 0 3 4 5 0 O S s $ 1 2 3 Beginning Finished Goods Inventory 4 Direct materials used 5 Direct labor 6 Manufacturing overhead > Cost of goods manufactured 8 Cost of goods available for sale 9 Deduct Ending Finished Good Inventory 10 Cost of Goods Sold 17 12 13 14 15 16 12 18 19 20 22 25 26 28 MOH Budget Ending Inventories Budget COGS Budget Nonmanuf Costs Budgeted Income Statement 0 0 0 $ 2 3 Variable costs: 4 Variable rate 5 Activity/cost driver 6 Total estimated variable nonmanufacturing costs 7 8 Fixed costs: 9 ??? 10 11 Other nonmanufacturing costs: 12 ??? 13 Total nonmanufacturing costs 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 MOH Budget Ending Inventories Budget COGS Budget Nonmanuf Costs Budgeted Income Statement B D G H 1 Prior Budget 1 7 S 8 S 3. Revenues 4 Less: Cost of Goods Sold 5 Gross Margin 6 Less: Nonmanufacturing Costs 7 Operating Income 8 9 10 11 12 13 14 15 16 17 18 0 1 3 MOH Budget Ending Inventories Budget COGS Budget Nonmanuf Costs Budgeted Income Statement
