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 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
Outerseam	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 45b7f4f3bfc7038_1	fill in the blank 45b7f4f3bfc7038_2
Plus May 31 desired inventory	fill in the blank 45b7f4f3bfc7038_4	fill in the blank 45b7f4f3bfc7038_5
Total units	fill in the blank 45b7f4f3bfc7038_6	fill in the blank 45b7f4f3bfc7038_7
Less May 1 estimated inventory	fill in the blank 45b7f4f3bfc7038_9	fill in the blank 45b7f4f3bfc7038_10
Total units to be produced	fill in the blank 45b7f4f3bfc7038_11	fill in the blank 45b7f4f3bfc7038_12

Feedback

a. Expected sales plus desired ending inventory minus estimated beginning inventory.

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 697f98f8200500a_1	fill in the blank 697f98f8200500a_2	fill in the blank 697f98f8200500a_3	fill in the blank 697f98f8200500a_4
501 Jeans	fill in the blank 697f98f8200500a_5	fill in the blank 697f98f8200500a_6	fill in the blank 697f98f8200500a_7	fill in the blank 697f98f8200500a_8
Total minutes	fill in the blank 697f98f8200500a_9	fill in the blank 697f98f8200500a_10	fill in the blank 697f98f8200500a_11	fill in the blank 697f98f8200500a_12
Total direct labor hours	fill in the blank 697f98f8200500a_13	fill in the blank 697f98f8200500a_14	fill in the blank 697f98f8200500a_15	fill in the blank 697f98f8200500a_16
Direct labor rate	$fill in the blank 697f98f8200500a_17	$fill in the blank 697f98f8200500a_18	$fill in the blank 697f98f8200500a_19	$fill in the blank 697f98f8200500a_20
Total direct labor cost	$fill in the blank 697f98f8200500a_21	$fill in the blank 697f98f8200500a_22	$fill in the blank 697f98f8200500a_23	$fill in the blank 697f98f8200500a_24	$fill in the blank 697f98f8200500a_25