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 24,700 and 53,600 pairs, respectively, for January 2010. The finished goods inventory is assumed as follows:

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

a. Prepare a production budget for January. Prepare the budget in two columns:DockersTM and 501 JeansTM.b. Prepare the January direct labor cost budget for the four sewing operations, assuming a $12.50 wage per hour for the inseam and outerseam sewing operations and a $16 wage per hour for the pocket and zipper sewing operations. Prepare the direct labor cost budget in four columns: inseam, outerseam, pockets, and zipper.

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Dockers 501 Jeans 1,490 1,890 January 1 estimated inventory January 31 desired inventory 1,110 410