27 19 Two-Leg Company manufactures slacks and jeans under a variety of brand names, such as Dockers and 501 Jeans Slacks and jeans are assembled by a variety of different sewing operations. Assume that the sales budget for Dockers and 501 Jeans shows estimated sales of 21,610 and 41,710 pairs, respectively, for May. The finished goods inventory is assumed as follows: Dockers 501 Jeans May 1 estimated inventory 970 1,180 May 31 desired inventory 360 1,470 Assume the following direct labor data per 10 pairs of Dockers and 501 Jeans for four different sewing operations: Direct Labor per 10 Pairs Dockers 501 Jeans Inseam 23 minutes 16 minutes Outerseam Pockets 9 11 Zipper 13 Total 72 minutes 54 minutes a. Prepare a production budget for May. Prepare the budget in two columns: Dockers and 501 Jeans. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Two-Leg Company Production Budget For Month Ending May 31 (assumed data) Dockers 501 Jeans Expected units to be sold 21,610 41,710 May 31 desired inventory 360 1.470 Total units available 43.180 May 1 estimated inventory -970 - 1.180 Total units to be produced 21,000 42,000 8 21,970 Feedback Two-Leg Company Production Budget For Month Ending May 31 (assumed data) Dockers 501 Jeans Expected units to be sold 21.610 41.710 May 31 desired inventory 360 Total units available 21.970 43, 1NO May 1 estimated inventory -1,180 Total units to be produced 21,000 42.000 1.470 -970 Feedback b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $12 wage per hour for the Inseam and outerseam sewing operations and a $18 wage per hour for the pocket and zipper sewing operations. Prepare the direct labor cost budget in four columns: inseam, outerscam, pockets, and zipper Two-Leg Company Direct Labor Cost Budget For Month Ending May 31 (assumed data) Inseam Outerseam Pockets Zipper Total Dockers 501 Jeans Total minutes Total direct labor hours Direct labor rate Total direct labor cost Feedback Check My Work Remember to take into account hours required for production, hourly rate and hours per unit when calculating direct labor cost Learning Objective 4 Feedback Check My Partially correct