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 23,600 and 53,100 pairs, respectively, for May. The finished goods inventory is assumed as follows:

   	Dockers		501 Jeans
   May 1 estimated inventory	670		1,660
   May 31 desired inventory	420		1,860

   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	18	minutes	9	minutes
   Outerseam	20		14
   Pockets	6		9
   Zipper	12		6
   Total	56	minutes	38	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.

   Levi Strauss & Co. Production Budget For the Month Ending May 31 (assumed data)

   	Dockers	501 Jeans
   Expected units to be sold	fill in the blank 96106c002ffb041_1	fill in the blank 96106c002ffb041_2
   May 1 desired inventoryMay 31 desired inventoryMay 1 estimated inventoryMay 31 estimated inventorySupervisor salaries	- Select -	- Select -
   Total units available	fill in the blank 96106c002ffb041_6	fill in the blank 96106c002ffb041_7
   May 1 desired inventoryMay 31 desired inventoryMay 1 estimated inventoryMay 31 estimated inventorySupervisor salaries	- Select -	- Select -
   Total units to be produced	fill in the blank 96106c002ffb041_11	fill in the blank 96106c002ffb041_12

   b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $13 wage per hour for the inseam and outerseam sewing operations and a $15 wage per hour for the pocket and zipper sewing operations. Prepare the direct labor cost budget in four columns: inseam, outerseam, pockets, and zipper.

   Levi Strauss & Co. Direct Labor Cost Budget For the Month Ending May 31 (assumed data)

   	Inseam	Outerseam	Pockets	Zipper	Total
   Dockers	fill in the blank 9eb5aa04800c016_1	fill in the blank 9eb5aa04800c016_2	fill in the blank 9eb5aa04800c016_3	fill in the blank 9eb5aa04800c016_4
   501 Jeans	fill in the blank 9eb5aa04800c016_5	fill in the blank 9eb5aa04800c016_6	fill in the blank 9eb5aa04800c016_7	fill in the blank 9eb5aa04800c016_8
   Total minutes	fill in the blank 9eb5aa04800c016_9	fill in the blank 9eb5aa04800c016_10	fill in the blank 9eb5aa04800c016_11	fill in the blank 9eb5aa04800c016_12
   Total direct labor hours	fill in the blank 9eb5aa04800c016_13	fill in the blank 9eb5aa04800c016_14	fill in the blank 9eb5aa04800c016_15	fill in the blank 9eb5aa04800c016_16
   Direct labor rate	x $fill in the blank 9eb5aa04800c016_17	x $fill in the blank 9eb5aa04800c016_18	x $fill in the blank 9eb5aa04800c016_19	x $fill in the blank 9eb5aa04800c016_20
   Total direct labor cost	$fill in the blank 9eb5aa04800c016_21	$fill in the blank 9eb5aa04800c016_22	$fill in the blank 9eb5aa04800c016_23	$fill in the blank 9eb5aa04800c016_24	$fill in the blank 9eb5aa04800c016_25

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