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 27,780 and 53,620 pairs, respectively, for May. The finished goods inventory is assumed as follows:

	Kickers		101 Denims
May 1 estimated inventory	1,240		1,510
May 31 desired inventory	460		1,890

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	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.

Two-Leg Company Production Budget May (assumed data)

	Kickers	101 Denims
Expected units to be sold	fill in the blank 87b33c021005fdf_1	fill in the blank 87b33c021005fdf_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 87b33c021005fdf_6	fill in the blank 87b33c021005fdf_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 87b33c021005fdf_11	fill in the blank 87b33c021005fdf_12

Question Content Area

b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $13 wage per hour for the inseam and outerseam sewing operations and a $19 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 898f7b05903ffcd_1	fill in the blank 898f7b05903ffcd_2	fill in the blank 898f7b05903ffcd_3	fill in the blank 898f7b05903ffcd_4
101 Denims	fill in the blank 898f7b05903ffcd_5	fill in the blank 898f7b05903ffcd_6	fill in the blank 898f7b05903ffcd_7	fill in the blank 898f7b05903ffcd_8
Total minutes	fill in the blank 898f7b05903ffcd_9	fill in the blank 898f7b05903ffcd_10	fill in the blank 898f7b05903ffcd_11	fill in the blank 898f7b05903ffcd_12
Convert minutes to hours	fill in the blank 898f7b05903ffcd_13	fill in the blank 898f7b05903ffcd_14	fill in the blank 898f7b05903ffcd_15	fill in the blank 898f7b05903ffcd_16
Hourly rate	x $fill in the blank 898f7b05903ffcd_17	x $fill in the blank 898f7b05903ffcd_18	x $fill in the blank 898f7b05903ffcd_19	x $fill in the blank 898f7b05903ffcd_20
Total direct labor cost	$fill in the blank 898f7b05903ffcd_21	$fill in the blank 898f7b05903ffcd_22	$fill in the blank 898f7b05903ffcd_23	$fill in the blank 898f7b05903ffcd_24	$fill in the blank 898f7b05903ffcd_25