Production and Direct Labor Cost Budgets Two-Leg Company manufactures slacks and jeans under a varlety 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 21,610 and 44,680 pairs, respectively, for May. The finished goods inventory is assumed as follows: Kickers 101 Denims May 1 estimated inventory 970 1,260 May 31 desired inventory 360 1,580 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 Zipper 10 Total 54 minutes 39 minutes
Production and Direct Labor Cost Budgets Two-Leg Company manufactures slacks and jeans under a varlety 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 21,610 and 44,680 pairs, respectively, for May. The finished goods inventory is assumed as follows: Kickers 101 Denims May 1 estimated inventory 970 1,260 May 31 desired inventory 360 1,580 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 Zipper 10 Total 54 minutes 39 minutes
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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Transcribed Image Text:Production and Direct Labor Cost Budgets
Two-Leg Company manufactures slacks and jeans under a varlety 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 21,610 and 44,680 pairs, respectively, for May. The
finished goods inventory is assumed as follows:
Kickers
101 Denims
May 1 estimated inventory
970
1,260
May 31 desired inventory
360
1,580
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
Zipper
10
Total
54 minutes
39 minutes
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