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5, 2021 X8 Acc. 202 (04) optional question 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 2015 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 $7.50 per board foot $15 per direct manufacturing labor-hour Deluxe Input Quantities per Unit of Output (per pair of sandals) Regular Direct materials Cloth 13 yards Wood 0 Direct manufacturing labor-hours (DMLH) 5 hours Setup-hours per batch 2 hours 1.5 yards 2 b.f. 7 hours 3 hours Inventory Information, Direct Materials Cloth Beginning inventory 610 yards Target ending inventory 386 yards Cost of beginning inventory Wood 800 b.f. 295 b.f. $3,219 $6,060 Tyva accounts for direct materials using a FIFO cost flow mption. Cost type Sales and Inventory Information, Finished Goods Regular Deluxe Expected sales in units (pairs of sandals) 2,000 3,000 Selling price $ 120 S 195 Target ending inventory in units 400 600 Beginning inventory in units 250 650 Beginning inventory in dollars $23,250 $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 activity- based costing and has classified all overhead costs for the month of June as shown in the following chart Denominator Activity Rate Manufacturing Setup Setup-hours $18 per setup-hour Processing Direct manufacturing labor-hours S1.80 per DMLH Inspection Number of pairs of sandals $1.35 per pair Nonmanufacturing Marketing and general administration Sales revenue 8% Numbe Shipping shipments S15 per shipment 1. Prepare each of the following for June: a. Revenues budget b. Production budget in units c. Direct material usage budget and direct material purchases budget in both units and dollars; round d. Direct manufacturing labor cost budget e. Manufacturing overhead cost budgets for setup, processing, and inspection activities 1. Budgeted unit cost of ending finished goods inventory and ending inventories budget 9. Cost of goods sold budget 1. Marketing and general administration and shipping costs budget Prepare a budgeted income statement for June ando budgeted betenee sheet for Tye-osef June 30, 2015 to dollars

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