Production and Direct Labor Cost Budgets

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.

Production and Direct Labor Cost Budgets 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. Levi Strauss and Co. Production Budget May (assumed data) Dockers 501 Jeans Expected units to be sold Total units required Total units to be produced a. Prepare a production budget for May. Levi Strauss and Co. Production Budget May (assumed data) Dockers Expected units to be sold 501 Jeans Total units required Total units to be produced 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. Levi Strauss and Co. Direct Labor Cost Budget May (assumed data) Inseam Outerseam Pockets Zipper Total Hours required for production: Dockers 501 Jeans Total minutes Convert minutes to hours Hourly rate X $ din Total direct labor cost o