Maurice Tutor

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Category > Accounting Posted 20 Aug 2017 My Price 10.00

Levi Strauss & Co

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 sew- ing operations. Assume that the sales budget for Dockers and 501 Jeans shows estimated sales of 23,600 and 53,100 pairs, respectively, for May 2016. 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

 

 

 

 

Dockers

501 Jeans

Inseam

 

18 minutes

9 minutes

Outerseam

 

20

14

Pockets

 

6

9

Zipper

 

12

  6

Total

 

56 minutes

38 minutes

 

a.     Prepare a production budget for May. Prepare the budget in two columns: Dockers® and 501 Jeans®.

 

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.

Answers

Maurice Tutor
(5)
Status NEW Posted 20 Aug 2017 09:08 AM My Price 10.00

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