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wo-Leg Company manufactures slacks and jeans under a variety of brand names, such as Dockers and 501 Jeans . Slacks and jeans are assembled by

wo-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

May 1 desired inventoryMay 31 desired inventoryMay 1 estimated inventoryMay 31 estimated inventorySupervisor salariesMay 31 desired inventory

May 31 desired inventory May 31 desired inventory
Total units available

May 1 desired inventoryMay 31 desired inventoryMay 1 estimated inventoryMay 31 estimated inventorySupervisor salariesMay 1 estimated inventory

May 1 estimated inventory May 1 estimated inventory
Total units to be produced

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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.

Learning Objective 4.

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
501 Jeans
Total minutes
Total direct labor hours
Direct labor rate
Total direct labor cost

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