Production and Direct Labor Cost Budgets 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 15,430 and 32,760 pairs, respectively, for May. The finished goods inventory is assumed as follows: Kickers 101 Denims May 1 estimated inventory 690 920 May 31 desired inventory 260 1,160 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 19 minutes 13 minutes Outerseam 23 16 Pockets
Production and Direct Labor Cost Budgets 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 15,430 and 32,760 pairs, respectively, for May. The finished goods inventory is assumed as follows: Kickers 101 Denims May 1 estimated inventory 690 920 May 31 desired inventory 260 1,160 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 19 minutes 13 minutes Outerseam 23 16 Pockets
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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HW #10 - Chpt 22
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Production and Direct Labor Cost Budgets
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 15,430 and 32,760 pairs, respectively, for May. The finished goods inventory is assumed as follows:
Kickers
101 Denims
May 1 estimated inventory
690
920
May 31 desired inventory
260
1,160
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
19 minutes
13 minutes
Outerseam
23
16
>
Pockets
7
Zipper
11
7
Total
60 minutes
45 minutes
a. Prepare a production budget for May.
Two-Leg Company
Production Budget
May (assumed data)
Kickers
101 Denims
Expected units to be sold
58°F
11:54 PM
W
^O ENG
全DD
Clear
4/19/2022
Transcribed Image Text:* CengageNOWv2 | Online teachin x
C Accounting question | Chegg.com x +
A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false
M Gmail
O
YouTube Maps
Blackboard
HW #10 - Chpt 22
eBook
E Print Item
Kıckers
101 Denims
Expected units to be sold
Total units
Total units to be produced
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 $18 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
>
Hours required for production:
Kickers
101 Denims
Total minutes
Convert minutes to hours
Hourly rate
Total direct labor cost
58°F
11:54 PM
W
A O ENG
Clear
4/19/2022
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