Question
Two-Leg Company manufactures slacks and jeans under a variety of brand names, such as Dockersand 501 Jeans. Slacks and jeans are assembled by a variety
Two-Leg Company manufactures slacks and jeans under a variety of brand names, such as Dockersand 501 Jeans. Slacks and jeans are assembled by a variety of different sewing operations. Assume that thesales budgetfor Dockers and 501 Jeans shows estimated sales of 15,430 and 35,750 pairs, respectively, for May. The finished goods inventory is assumed as follows:
Dockers501 JeansMay 1 estimated inventory6901,010May 31 desired inventory2601,260
Assume the following direct labor data per 10 pairs of Dockers and 501 Jeans for four different sewing operations:
Direct Labor per 10 PairsDockers501 JeansInseam16minutes11minutesOuterseam1914Pockets68Zipper106Total51minutes39minutes
a.production budget for May. Prepare the budget in two columns: Dockersand 501 Jeans. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Two-Leg CompanyProduction BudgetFor Month Ending May 31 (assumed data)Dockers501 JeansExpected units to be soldMay 31 desired inventory
Total units availableMay 1 estimated inventory
Total units to be produced
b.Prepare the May direct labor cost budget for the four sewing operations, assuming a $12 wage per hour for the inseam and outerseam sewing operations and a $19 wage per hour for the pocket and zipper sewing operations. Prepare the direct labor cost budget in four columns: inseam, outerseam, pockets, and zipper.
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