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 65,540 pairs, respectively, for May. The finished goods inventory is assumed as follows:

	Dockers		501 Jeans
May 1 estimated inventory	1,380		1,850
May 31 desired inventory	510		2,310

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	19	minutes	13	minutes
Outerseam	23		16
Pockets	7		9
Zipper	11		7
Total	60	minutes	45	minutes

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 1a11960be023007_1	fill in the blank 1a11960be023007_2
	fill in the blank 1a11960be023007_4	fill in the blank 1a11960be023007_5
Total units available	fill in the blank 1a11960be023007_6	fill in the blank 1a11960be023007_7
	fill in the blank 1a11960be023007_9	fill in the blank 1a11960be023007_10
Total units to be produced	fill in the blank 1a11960be023007_11	fill in the blank 1a11960be023007_12

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 $17 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 7a3a2a0e404ffc4_1	fill in the blank 7a3a2a0e404ffc4_2	fill in the blank 7a3a2a0e404ffc4_3	fill in the blank 7a3a2a0e404ffc4_4
501 Jeans	fill in the blank 7a3a2a0e404ffc4_5	fill in the blank 7a3a2a0e404ffc4_6	fill in the blank 7a3a2a0e404ffc4_7	fill in the blank 7a3a2a0e404ffc4_8
Total minutes	fill in the blank 7a3a2a0e404ffc4_9	fill in the blank 7a3a2a0e404ffc4_10	fill in the blank 7a3a2a0e404ffc4_11	fill in the blank 7a3a2a0e404ffc4_12
Total direct labor hours	fill in the blank 7a3a2a0e404ffc4_13	fill in the blank 7a3a2a0e404ffc4_14	fill in the blank 7a3a2a0e404ffc4_15	fill in the blank 7a3a2a0e404ffc4_16
Direct labor rate	x $fill in the blank 7a3a2a0e404ffc4_17	x $fill in the blank 7a3a2a0e404ffc4_18	x $fill in the blank 7a3a2a0e404ffc4_19	x $fill in the blank 7a3a2a0e404ffc4_20
Total direct labor cost	$fill in the blank 7a3a2a0e404ffc4_21	$fill in the blank 7a3a2a0e404ffc4_22	$fill in the blank 7a3a2a0e404ffc4_23	$fill in the blank 7a3a2a0e404ffc4_24	$fill in the blank 7a3a2a0e404ffc4_25