1. Levi Strauss & Co. 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 60,000 and 125,000 pairs, respectively, for May. The finished goods inventory is assumed as follows:

   	Dockers		501 Jeans
   May 1 estimated inventory	6,000		15,000
   May 31 desired inventory	8,500		10,000

   Assume the following direct labor data per 5 pairs of Dockers and 501 Jeans for four different sewing operations:

   	Direct Labor per 5 Pairs
   	Dockers		501 Jeans
   Inseam	15	minutes	10	minutes
   Outer seam	18		15
   Pockets	6		4
   Zipper	3		2
   Total	42	minutes	31	minutes

   a.  Prepare a production budget for May.

   LEVI STRAUSS & CO.
   Production Budget
   May (Assumed Data)
   	Dockers® (Units)	501 Jeans® (Units)
   Expected units to be sold	fill in the blank 147566f59fe6045_1	fill in the blank 147566f59fe6045_2
   	fill in the blank 147566f59fe6045_4	fill in the blank 147566f59fe6045_5
   Total units	fill in the blank 147566f59fe6045_6	fill in the blank 147566f59fe6045_7
   	fill in the blank 147566f59fe6045_9	fill in the blank 147566f59fe6045_10
   Total units to be produced	fill in the blank 147566f59fe6045_11	fill in the blank 147566f59fe6045_12

   b.  Prepare the May direct labor cost budget for the four sewing operations, assuming a $15 wage per hour for the inseam and outerseam sewing operations and a $17 wage per hour for the pocket and zipper sewing operations. Round your answers to one decimal place, if necessary.

   LEVI STRAUSS & CO.
   Direct Labor Cost Budget
   May (Assumed Data)
   	Inseam (minutes)	Outerseam (minutes)	Pockets (minutes)	Zipper (minutes)	Total
   Dockers®	fill in the blank 11d2bdf95f9bfca_1	fill in the blank 11d2bdf95f9bfca_2	fill in the blank 11d2bdf95f9bfca_3	fill in the blank 11d2bdf95f9bfca_4
   501 Jeans®	fill in the blank 11d2bdf95f9bfca_5	fill in the blank 11d2bdf95f9bfca_6	fill in the blank 11d2bdf95f9bfca_7	fill in the blank 11d2bdf95f9bfca_8
   Total minutes	fill in the blank 11d2bdf95f9bfca_9	fill in the blank 11d2bdf95f9bfca_10	fill in the blank 11d2bdf95f9bfca_11	fill in the blank 11d2bdf95f9bfca_12
   Total direct labor hours	fill in the blank 11d2bdf95f9bfca_13	fill in the blank 11d2bdf95f9bfca_14	fill in the blank 11d2bdf95f9bfca_15	fill in the blank 11d2bdf95f9bfca_16
   Direct labor rate	$fill in the blank 11d2bdf95f9bfca_17	$fill in the blank 11d2bdf95f9bfca_18	$fill in the blank 11d2bdf95f9bfca_19	$fill in the blank 11d2bdf95f9bfca_20
   Total direct labor cost	$fill in the blank 11d2bdf95f9bfca_21	$fill in the blank 11d2bdf95f9bfca_22	$fill in the blank 11d2bdf95f9bfca_23	$fill in the blank 11d2bdf95f9bfca_24	$fill in the blank 11d2bdf95f9bfca_25