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690 Production and Direct cabor Cost Budgets Two-Leg Company manufactures slacks and jeans under a variety of brand names, such as Dockers and 501 Jeans
690 Production and Direct cabor Cost Budgets 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 15,430 and 32,760 pairs, respectively, for May. The finished goods inventory is assumed as follows: Dockers 501 Jeans May 1 estimated Inventory 920 May 31 desired Inventory 260 1,160 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 Outeream 27 19 Pockets 9 11 Zipper 13 8 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 May 31 desired Inventory Total units available May 1 estimated inventory Total units to be produced b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $9 wage per hour for the inseam and outerscam 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, outerseam, 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 x Total direct labor cost D
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