Question
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.
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 |
Feedback
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.
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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