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 40,130 and 71,500 pairs, respectively, for May. The finished goods inventory is assumed as follows: Dockers 501 Jeans May 1 estimated inventory 1,790 2,020 May 31 desired inventory 660 2,520 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 12 minutes Outerseam 22 15 Pockets 7 9 Zipper 10 6 Total 57 minutes 42 minutes a. Prepare a production budget for May. LEVI STRAUSS & CO. Production Budget May Dockers® 501 Jeans® Expected units to be sold fill in the blank 95621304a05604c_1 fill in the blank 95621304a05604c_2 Plus May 31 desired inventory fill in the blank 95621304a05604c_4 fill in the blank 95621304a05604c_5 Total units fill in the blank 95621304a05604c_6 fill in the blank 95621304a05604c_7 Less May 1 estimated inventory fill in the blank 95621304a05604c_9 fill in the blank 95621304a05604c_10 Total units to be produced fill in the blank 95621304a05604c_11 fill in the blank 95621304a05604c_12 Feedback a. Expected sales plus desired ending inventory minus estimated beginning inventory. b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $12.00 wage per hour for the inseam and outerseam sewing operations and a $15.00 wage per hour for the pocket and zipper sewing operations. LEVI STRAUSS & CO. Direct Labor Cost Budget May Inseam (minutes) Outerseam (minutes) Pockets (minutes) Zipper (minutes) Total Dockers® ????? ????? ????? ????? 501 Jeans® ????? ????? ????? ????? Total minutes ????? ????? ????? ????? Total direct labor hours ????? ????? ????? ????? Direct labor rate $????? $????? $????? $????? Total direct labor cost $????? $????? $????? $????? $??????
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 40,130 and 71,500 pairs, respectively, for May. The finished goods inventory is assumed as follows: Dockers 501 Jeans May 1 estimated inventory 1,790 2,020 May 31 desired inventory 660 2,520 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 12 minutes Outerseam 22 15 Pockets 7 9 Zipper 10 6 Total 57 minutes 42 minutes a. Prepare a production budget for May. LEVI STRAUSS & CO. Production Budget May Dockers® 501 Jeans® Expected units to be sold fill in the blank 95621304a05604c_1 fill in the blank 95621304a05604c_2 Plus May 31 desired inventory fill in the blank 95621304a05604c_4 fill in the blank 95621304a05604c_5 Total units fill in the blank 95621304a05604c_6 fill in the blank 95621304a05604c_7 Less May 1 estimated inventory fill in the blank 95621304a05604c_9 fill in the blank 95621304a05604c_10 Total units to be produced fill in the blank 95621304a05604c_11 fill in the blank 95621304a05604c_12 Feedback a. Expected sales plus desired ending inventory minus estimated beginning inventory. b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $12.00 wage per hour for the inseam and outerseam sewing operations and a $15.00 wage per hour for the pocket and zipper sewing operations. LEVI STRAUSS & CO. Direct Labor Cost Budget May Inseam (minutes) Outerseam (minutes) Pockets (minutes) Zipper (minutes) Total Dockers® ????? ????? ????? ????? 501 Jeans® ????? ????? ????? ????? Total minutes ????? ????? ????? ????? Total direct labor hours ????? ????? ????? ????? Direct labor rate $????? $????? $????? $????? Total direct labor cost $????? $????? $????? $????? $??????
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 13E
Related questions
Concept explainers
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.
Question
(Only need section B)
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 40,130 and 71,500 pairs, respectively, for May. The finished goods inventory is assumed as follows:
| Dockers | 501 Jeans | |||
| May 1 estimated inventory | 1,790 | 2,020 | ||
| May 31 desired inventory | 660 | 2,520 |
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 | 12 | minutes |
| Outerseam | 22 | 15 | ||
| Pockets | 7 | 9 | ||
| Zipper | 10 | 6 | ||
| Total | 57 | minutes | 42 | minutes |
a. Prepare a production budget for May.
| LEVI STRAUSS & CO. | ||
| Production Budget | ||
| May | ||
| Dockers® | 501 Jeans® | |
| Expected units to be sold | fill in the blank 95621304a05604c_1 | fill in the blank 95621304a05604c_2 |
| Plus May 31 desired inventory | fill in the blank 95621304a05604c_4 | fill in the blank 95621304a05604c_5 |
| Total units | fill in the blank 95621304a05604c_6 | fill in the blank 95621304a05604c_7 |
| Less May 1 estimated inventory | fill in the blank 95621304a05604c_9 | fill in the blank 95621304a05604c_10 |
| Total units to be produced | fill in the blank 95621304a05604c_11 | fill in the blank 95621304a05604c_12 |
a. Expected sales plus desired ending inventory minus estimated beginning inventory.
b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $12.00 wage per hour for the inseam and outerseam sewing operations and a $15.00 wage per hour for the pocket and zipper sewing operations.
| LEVI STRAUSS & CO. | |||||
| Direct Labor Cost Budget | |||||
| May | |||||
| Inseam (minutes) | Outerseam (minutes) | Pockets (minutes) | Zipper (minutes) | Total | |
| Dockers® | ????? | ????? | ????? | ????? | |
| 501 Jeans® | ????? | ????? | ????? | ????? | |
| Total minutes | ????? | ????? | ????? | ????? | |
| Total direct labor hours | ????? | ????? | ????? | ????? | |
| Direct labor rate | $????? | $????? | $????? | $????? | |
| Total direct labor cost | $????? | $????? | $????? | $????? | $?????? |
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