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 40,130 and 77,450 pairs, respectively, for May. The finished goods inventory is assumed as follows:

	Kickers		101 Denims
May 1 estimated inventory	1,790		2,180
May 31 desired inventory	660		2,730

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	23	minutes	16	minutes
Outerseam	27		19
Pockets	9		11
Zipper	13		8
Total	72	minutes	54	minutes

a. Prepare a production budget for May.

Two-Leg Company
Production Budget
May (assumed data)
	Kickers	101 Denims
Expected units to be sold	fill in the blank b2c47bfa9ff2fff_1	fill in the blank b2c47bfa9ff2fff_2
Plus May 1 desired inventory	fill in the blank b2c47bfa9ff2fff_4	fill in the blank b2c47bfa9ff2fff_5
Total units	fill in the blank b2c47bfa9ff2fff_6	fill in the blank b2c47bfa9ff2fff_7
Less May 1 estimated inventory	fill in the blank b2c47bfa9ff2fff_9	fill in the blank b2c47bfa9ff2fff_10
Total units to be produced	fill in the blank b2c47bfa9ff2fff_11	fill in the blank b2c47bfa9ff2fff_12

b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $11 wage per hour for the inseam and outerseam sewing operations and a $16 wage per hour for the pocket and zipper sewing operations.

Two-Leg Company
Direct Labor Cost Budget
May (assumed data)
	Inseam	Outerseam	Pockets	Zipper	Total
Hours required for production:
Kickers	fill in the blank 1934c4066fa002a_1	fill in the blank 1934c4066fa002a_2	fill in the blank 1934c4066fa002a_3	fill in the blank 1934c4066fa002a_4
101 Denims	fill in the blank 1934c4066fa002a_5	fill in the blank 1934c4066fa002a_6	fill in the blank 1934c4066fa002a_7	fill in the blank 1934c4066fa002a_8
Total minutes	fill in the blank 1934c4066fa002a_9	fill in the blank 1934c4066fa002a_10	fill in the blank 1934c4066fa002a_11	fill in the blank 1934c4066fa002a_12
Convert minutes to hours	fill in the blank 1934c4066fa002a_13	fill in the blank 1934c4066fa002a_14	fill in the blank 1934c4066fa002a_15	fill in the blank 1934c4066fa002a_16
Hourly rate	x $fill in the blank 1934c4066fa002a_17	x $fill in the blank 1934c4066fa002a_18	x $fill in the blank 1934c4066fa002a_19	x $fill in the blank 1934c4066fa002a_20
Total direct labor cost	$fill in the blank 1934c4066fa002a_21	$fill in the blank 1934c4066fa002a_22	$fill in the blank 1934c4066fa002a_23	$fill in the blank 1934c4066fa002a_24	$fill in the blank 1934c4066fa002a_25