Production and Direct Labor Cost Budgets

Two-Leg Company 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 30,870 and 68,510 pairs, respectively, for May. The finished goods inventory is assumed as follows:

	Dockers		501 Jeans
May 1 estimated inventory	1,380		1,930
May 31 desired inventory	510		2,420

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	16	minutes	11	minutes
Outerseam	19		14
Pockets	6		8
Zipper	10		6
Total	51	minutes	39	minutes

Question Content Area

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.

Two-Leg Company Production Budget For Month Ending May 31 (assumed data)

	Dockers	501 Jeans
Expected units to be sold	fill in the blank c3cbedf8b05304e_1	fill in the blank c3cbedf8b05304e_2
May 1 desired inventoryMay 31 desired inventoryMay 1 estimated inventoryMay 31 estimated inventorySupervisor salaries	- Select -	- Select -
Total units available	fill in the blank c3cbedf8b05304e_6	fill in the blank c3cbedf8b05304e_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 c3cbedf8b05304e_11	fill in the blank c3cbedf8b05304e_12

Question Content Area

b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $10 wage per hour for the inseam and outerseam sewing operations and a $16 wage per hour for the pocket and zipper sewing operations. Prepare the direct labor cost budget in four columns: inseam, outerseam, pockets, and zipper.

Two-Leg Company Direct Labor Cost Budget For Month Ending May 31 (assumed data)

	Inseam	Outerseam	Pockets	Zipper	Total
Dockers	fill in the blank 47e897fd802efc2_1	fill in the blank 47e897fd802efc2_2	fill in the blank 47e897fd802efc2_3	fill in the blank 47e897fd802efc2_4
501 Jeans	fill in the blank 47e897fd802efc2_5	fill in the blank 47e897fd802efc2_6	fill in the blank 47e897fd802efc2_7	fill in the blank 47e897fd802efc2_8
Total minutes	fill in the blank 47e897fd802efc2_9	fill in the blank 47e897fd802efc2_10	fill in the blank 47e897fd802efc2_11	fill in the blank 47e897fd802efc2_12
Total direct labor hours	fill in the blank 47e897fd802efc2_13	fill in the blank 47e897fd802efc2_14	fill in the blank 47e897fd802efc2_15	fill in the blank 47e897fd802efc2_16
Direct labor rate	x $fill in the blank 47e897fd802efc2_17	x $fill in the blank 47e897fd802efc2_18	x $fill in the blank 47e897fd802efc2_19	x $fill in the blank 47e897fd802efc2_20
Total direct labor cost