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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 $33,960$ and $68,510$ pairs, respectively, for May. The finished goods inventory is assumed as follows:

Kickers $101$ Denims

May $1$ estimated inventory $1,5201,930$

May $31$ desired inventory $5602,420$

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 $18$ minutes $12$ minutes

Outerseam $2215$

Pockets $79$

Zipper $106$

Total $57$ minutes $42$ minutes

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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 $2$dd$31$c$0$e$7$fa$8053\_1$

$33,960$

fill in the blank $2$dd$31$c$0$e$7$fa$8053\_2$

$68,510$

Plus May $31$ desired inventory

Plus May $31$ desired inventory

$560$

Plus May $31$ desired inventory

$2,420$

Total units fill in the blank $2$dd$31$c$0$e$7$fa$8053\_6$

$34,520$

fill in the blank $2$dd$31$c$0$e$7$fa$8053\_7$

$70,930$

Less May $1$ estimated inventory

Less May $1$ estimated inventory

$1,520$

Less May $1$ estimated inventory

$1,930$

Total units to be produced fill in the blank $2$dd$31$c$0$e$7$fa$8053\_11$

$33,000$

fill in the blank $2$dd$31$c$0$e$7$fa$8053\_12$

$69,000$

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Remember to take into account expected units to be sold, desired units in ending inventory and estimated units in beginning inventory when calculating total units to be produced.

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b$.$ Prepare the May direct labor cost budget for the four sewing operations, assuming a $$11$ wage per hour for the inseam and outerseam sewing operations and a $$15$ 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: blank blank blank blank blank

Kickers fill in the blank $69$a$91$f$018$fe$1$fbd$\_1$

fill in the blank $69$a$91$f$018$fe$1$fbd$\_2$

fill in the blank $69$a$91$f$018$fe$1$fbd$\_3$

fill in the blank $69$a$91$f$018$fe$1$fbd$\_4$

$101$ Denims fill in the blank $69$a$91$f$018$fe$1$fbd$\_5$

fill in the blank $69$a$91$f$018$fe$1$fbd$\_6$

fill in the blank $69$a$91$f$018$fe$1$fbd$\_7$

fill in the blank $69$a$91$f$018$fe$1$fbd$\_8$

Total minutes fill in the blank $69$a$91$f$018$fe$1$fbd$\_9$

fill in the blank $69$a$91$f$018$fe$1$fbd$\_10$

fill in the blank $69$a$91$f$018$fe$1$fbd$\_11$

fill in the blank $69$a$91$f$018$fe$1$fbd$\_12$

Convert minutes to hours fill in the blank $69$a$91$f$018$fe$1$fbd$\_13$

fill in the blank $69$a$91$f$018$fe$1$fbd$\_14$

fill in the blank $69$a$91$f$018$fe$1$fbd$\_15$

fill in the blank $69$a$91$f$018$fe$1$fbd$\_16$

Hourly rate x $fill in the blank $69$a$91$f$018$fe$1$fbd$\_17$

$11$

x $fill in the blank $69$a$91$f$018$fe$1$fbd$\_18$

$11$

x $fill in the blank $69$a$91$f$018$fe$1$fbd$\_19$

$15$

x $fill in the blank $69$a$91$f$018$fe$1$fbd$\_20$

$15$

Total direct labor cost $fill in the blank $69$a$91$f$018$fe$1$fbd$\_21$

$fill in the blank $69$a$91$f$018$fe$1$fbd$\_22$

$fill in the blank $69$a$91$f$018$fe$1$fbd$\_23$

$fill in the blank $69$a$91$f$018$fe$1$fbd$\_24$

$fill in the blank $69$a$91$f$018$fe$1$fbd$\_25$