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 60,000 and 125,000 pairs, respectively, for May. The finished goods inventory is assumed as follows:

Assume the following direct labor data per 5 pairs of Dockers and 501 Jeans for four different sewing operations:

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 $15 wage per hour for the inseam and outerseam sewing operations and a $17 wage per hour for the pocket and zipper sewing operations. Prepare the direct labor cost budget in four columns: inseam, outerseam, pockets, and zipper.

Transcribed Image Text:

Dockers 501 Jeans May 1 estimated inventory May 31 desired inventory 6,000 15,000 8,500 10,000