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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

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 40,130 and 74,470 pairs, respectively, for May. The finished goods inventory is assumed as follows:

Kickers 101 Denims
May 1 estimated inventory 1,790 2,100
May 31 desired inventory 660 2,630

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 17 minutes 11 minutes
Outerseam 21 14
Pockets 6 8
Zipper 10 6
Total 54 minutes 39 minutes

a. Prepare a production budget for May.

Two-Leg Company
Production Budget
May (assumed data)
Kickers 101 Denims
Expected units to be sold
  • Less May 1 desired inventory
  • Less May 31 desired inventory
  • Plus May 1 desired inventory
  • Plus May 31 desired inventory
  • Plus May 1 estimated inventory
  • Plus May 31 estimated inventory
Total units
  • Less May 1 desired inventory
  • Less May 31 desired inventory
  • Less May 1 estimated inventory
  • Less May 31 estimated inventory
  • Plus May 1 estimated inventory
  • Plus May 31 estimated inventory
Total units to be produced

*THE BULLETS ARE THE OPTIONS I HAVE FOR THAT BOX

b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $9 wage per hour for the inseam and outerseam sewing operations and a $16 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
Kickers
101 Denims
Total minutes
Total direct labor hours
Direct labor rate x $ x $ x $ x $
Total direct labor cost $ $ $ $ $

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