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Production and Direct Labor Cost Budgets Levi Strauss & Co. manufactures stocks and jeans under a variety of brand names, such as Dockers and 501

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Production and Direct Labor Cost Budgets Levi Strauss & Co. manufactures stocks and jeans under a variety of brand names, such as Dockers and 501 Jeans Slacks and years 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 w assumed as follows: Dockers 501 Jeans May 1 estimated Inventory 670 1,660 May 31 desired inventory 420 1,060 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 1 minutes 9 minutes Inscom Outeram Pockets 20 14 6 12 6 Zipper 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 Plus May 31 desired Inventory Total units required Less May 1 estimated Inventory Levi Strauss and Co. Production Budget May (assumed data) Dockers 501 Jeans Expected units to be sold Plus May 31 desired Inventory Total units required Less May 1 estimated Inventory Total units to be produced Feedback Why Work Remember to take into account expected units to be sold, desired units in ending Inventory and estimated units in beginning Inventory w 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 wage per hour for the pocket and zipper sewing operations. Levi Strauss and Co. Direct Labor Cost Budget May (assumed data) Inseam Outerscam Pockets Zipper Total Hours required for production: Dockers INX 501 Jeans Total minutes Convert minutes to hours b. Prepare the May direct labor cost budget for the four swing operations, assuming $13 wage per hour for the inseam and outram song operations and ots wage per hour for the pocket and upper sewing operations Levi Strauss and Co. Direct Labor Cost Budget May (assumed data) Inscam Outerscam Pockets Zipper Total Hours required for production: Dackers INX 501 Jeans Total minutes Convert minutes to hours bono JUUD Hourly rate o Total direct labor cost

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