Reference no: EM132582875

Levi Strauss & Co. 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 23,600 and 53,100 pairs, respectively, for May. The finished goods inventory is assumed as follows:

Dockers 501 Jeans

May 1 estimated inventory 670 1,660

May 31 desired inventory 420 1,860

Assume the following direct labor data per 10 pairs of Dockers and 501 Jeans for four different sewing operations:

Direct Labor per 10 Pairs Dockers501

Jeans

Inseam     18minutes            9minutes

Outerseam      20                  14

Pockets           6                      9

Zipper                 12                6

Total      56 minutes            38 minutes

Question a. Prepare 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.

Question 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 $15 wage per hour for the pocket and zipper sewing operations. Prepare the direct labor cost budget in four columns: inseam, outerseam, pockets, and zipper.