1. 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 4d9320fe5006fef_1	fill in the blank 4d9320fe5006fef_2
   May 1 desired inventoryMay 31 desired inventoryMay 1 estimated inventoryMay 31 estimated inventorySupervisor salaries	- Select -	- Select -
   Total units available	fill in the blank 4d9320fe5006fef_6	fill in the blank 4d9320fe5006fef_7
   May 1 desired inventoryMay 31 desired inventoryMay 1 estimated inventoryMay 31 estimated inventorySupervisor salaries	- Select -	- Select -
   Total units to be produced	fill in the blank 4d9320fe5006fef_11	fill in the blank 4d9320fe5006fef_12

   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. 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 472eccf68071f87_1	fill in the blank 472eccf68071f87_2	fill in the blank 472eccf68071f87_3	fill in the blank 472eccf68071f87_4
   501 Jeans	fill in the blank 472eccf68071f87_5	fill in the blank 472eccf68071f87_6	fill in the blank 472eccf68071f87_7	fill in the blank 472eccf68071f87_8
   Total minutes	fill in the blank 472eccf68071f87_9	fill in the blank 472eccf68071f87_10	fill in the blank 472eccf68071f87_11	fill in the blank 472eccf68071f87_12
   Total direct labor hours	fill in the blank 472eccf68071f87_13	fill in the blank 472eccf68071f87_14	fill in the blank 472eccf68071f87_15	fill in the blank 472eccf68071f87_16
   Direct labor rate	x $fill in the blank 472eccf68071f87_17	x $fill in the blank 472eccf68071f87_18	x $fill in the blank 472eccf68071f87_19	x $fill in the blank 472eccf68071f87_20
   Total direct labor cost	$fill in the blank 472eccf68071f87_21	$fill in the blank 472eccf68071f87_22	$fill in the blank 472eccf68071f87_23	$fill in the blank 472eccf68071f87_24	$fill in the blank 472eccf68071f87_25

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