Production and Direct Labor Cost Budgets

Two-Leg Company manufactures slacks and jeans under a variety of brand names, such as Kickers and 101 Denims. Slacks and jeans are assembled by a variety of different sewing operations. Assume that the sales budget for Kickers and 101 Denims shows estimated sales of 15,430 and 29,790 pairs, respectively, for May. The finished goods inventory is assumed as follows:

	Kickers	101 Denims
May 1 estimated inventory	690		840
May 31 desired inventory	260		1,050

Assume the following direct labor data per 10 pairs of Kickers and 101 Denims for four different sewing operations:

	Direct Labor per 10 Pairs
	Kickers	101 Denims
Inseam	20	minutes	14	minutes
Outerseam	24		17
Pockets	8		10
Zipper	11		7
Total	63	minutes	48	minutes

Question Content Area

a. Prepare a production budget for May.

	Kickers	101 Denims
Expected units to be sold	fill in the blank 74e643f0d03d060_1	fill in the blank 74e643f0d03d060_2
Less May 31 desired inventoryPlus May 1 desired inventoryPlus May 31 desired inventoryPlus May 1 estimated inventoryPlus May 31 estimated inventory	- Select -	- Select -
Total units	fill in the blank 74e643f0d03d060_6	fill in the blank 74e643f0d03d060_7
Less May 1 desired inventoryLess May 31 desired inventoryLess May 1 estimated inventoryLess May 31 estimated inventoryPlus May 1 estimated inventory	- Select -	- Select -
Total units to be produced	fill in the blank 74e643f0d03d060_11	fill in the blank 74e643f0d03d060_12

Question Content Area

b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $9 wage per hour for the inseam and outerseam sewing operations and a $15 wage per hour for the pocket and zipper sewing operations.

	Inseam	Outerseam	Pockets	Zipper	Total
Hours required for production:	blank	blank	blank	blank	blank
Kickers	fill in the blank 9d0e21014f8efd4_1	fill in the blank 9d0e21014f8efd4_2	fill in the blank 9d0e21014f8efd4_3	fill in the blank 9d0e21014f8efd4_4
101 Denims	fill in the blank 9d0e21014f8efd4_5	fill in the blank 9d0e21014f8efd4_6	fill in the blank 9d0e21014f8efd4_7	fill in the blank 9d0e21014f8efd4_8
Total minutes	fill in the blank 9d0e21014f8efd4_9	fill in the blank 9d0e21014f8efd4_10	fill in the blank 9d0e21014f8efd4_11	fill in the blank 9d0e21014f8efd4_12
Convert minutes to hours	fill in the blank 9d0e21014f8efd4_13	fill in the blank 9d0e21014f8efd4_14	fill in the blank 9d0e21014f8efd4_15	fill in the blank 9d0e21014f8efd4_16
Hourly rate	x $fill in the blank 9d0e21014f8efd4_17	x $fill in the blank 9d0e21014f8efd4_18	x $fill in the blank 9d0e21014f8efd4_19	x $fill in the blank 9d0e21014f8efd4_20
Total direct labor cost	$fill in the blank 9d0e21014f8efd4_21	$fill in the blank 9d0e21014f8efd4_22	$fill in the blank 9d0e21014f8efd4_23	$fill in the blank 9d0e21014f8efd4_24	$fill in the blank 9d0e21014f8efd4_25