Production and direct labor cost budgets 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: May 1 estimated inventory May 31 desired inventory Inseam Outerseam Pockets Zipper Total Assume the following direct labor data per 10 pairs of Dockers and 501 Jeans for four different sewing operations: Direct Labor per 10 Pairs 501 Jeans Dockers 18 minutes 20 6 12 Dockers 670 420 56 minutes 501 Jeans 1,660 1,860 14 9 6 9 minutes 38 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.
Production and direct labor cost budgets 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: May 1 estimated inventory May 31 desired inventory Inseam Outerseam Pockets Zipper Total Assume the following direct labor data per 10 pairs of Dockers and 501 Jeans for four different sewing operations: Direct Labor per 10 Pairs 501 Jeans Dockers 18 minutes 20 6 12 Dockers 670 420 56 minutes 501 Jeans 1,660 1,860 14 9 6 9 minutes 38 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.
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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![# Levi Strauss & Co. Production and Direct Labor Cost Budget
## Production Budget for the Month Ending May 31 (Assumed Data)
### Line Item Description
**Dockers®**
- Expected units to be sold: [empty box]
- Total units available: [empty drop-down]
- Total units to be produced: [empty box]
**501 Jeans®**
- Expected units to be sold: [empty box]
- Total units available: [empty drop-down]
- Total units to be produced: [empty box]
---
## Direct Labor Cost Budget for the Month Ending May 31 (Assumed Data)
### Line Item Description
| | Inseam | Outerseam | Pockets | Zipper | Total |
|-------------|--------|-----------|---------|--------|-------|
| **Dockers®**| [ ] | [ ] | [ ] | [ ] | [ ] |
| **501 Jeans®** | [ ] | [ ] | [ ] | [ ] | [ ] |
| **Total minutes** | [ ] | [ ] | [ ] | [ ] | [ ] |
| **Total direct labor hours** | [ ]x$13 | [ ]x$13 | [ ]x$15 | [ ]x$15 | [ ] |
| **Total direct labor cost** | $[ ] | $[ ] | $[ ] | $[ ] | $[ ] |
### Instructions
b. Prepare the May direct labor cost budget for the four sewing operations. Assume 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. Organize the cost budget into four columns: inseam, outerseam, pockets, and zipper.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d1902da-7136-4e03-a2f5-2ee90373f1ad%2F0bdd564c-640b-4132-a036-df8eecfd7787%2Fsdulpsn_processed.png&w=3840&q=75)
Transcribed Image Text:# Levi Strauss & Co. Production and Direct Labor Cost Budget
## Production Budget for the Month Ending May 31 (Assumed Data)
### Line Item Description
**Dockers®**
- Expected units to be sold: [empty box]
- Total units available: [empty drop-down]
- Total units to be produced: [empty box]
**501 Jeans®**
- Expected units to be sold: [empty box]
- Total units available: [empty drop-down]
- Total units to be produced: [empty box]
---
## Direct Labor Cost Budget for the Month Ending May 31 (Assumed Data)
### Line Item Description
| | Inseam | Outerseam | Pockets | Zipper | Total |
|-------------|--------|-----------|---------|--------|-------|
| **Dockers®**| [ ] | [ ] | [ ] | [ ] | [ ] |
| **501 Jeans®** | [ ] | [ ] | [ ] | [ ] | [ ] |
| **Total minutes** | [ ] | [ ] | [ ] | [ ] | [ ] |
| **Total direct labor hours** | [ ]x$13 | [ ]x$13 | [ ]x$15 | [ ]x$15 | [ ] |
| **Total direct labor cost** | $[ ] | $[ ] | $[ ] | $[ ] | $[ ] |
### Instructions
b. Prepare the May direct labor cost budget for the four sewing operations. Assume 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. Organize the cost budget into four columns: inseam, outerseam, pockets, and zipper.
Transcribed Image Text:**Production and Direct Labor Cost Budgets**
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**
| Operation | Dockers | 501 Jeans |
|------------|---------|-----------|
| Inseam | 18 minutes | 9 minutes |
| Outerseam | 20 minutes | 14 minutes |
| Pockets | 6 minutes | 9 minutes |
| Zipper | 12 minutes | 6 minutes |
| **Total** | **56 minutes** | **38 minutes** |
**Task:**
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.
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