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 120,000 and 250,000 pairs, respectively, for May. The finished goods inventory is assumed as follows: Dockers 501 Jeans May 1 estimated inventory 12,000 30,000 May 31 desired inventory 17,000 20,000 Assume the following direct labor data per 5 pairs of Dockers and 501 Jeans for four different sewing operations: Direct Labor per 5 Pairs Dockers 501 Jeans Inseam 15 minutes 10 minutes Outerseam 18 15 Pockets 6 4 Zipper 3 2 Total 42 minutes 31 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 27604ef92fea063_1 fill in the blank 27604ef92fea063_2 fill in the blank 27604ef92fea063_4 fill in the blank 27604ef92fea063_5 Total units fill in the blank 27604ef92fea063_6 fill in the blank 27604ef92fea063_7 fill in the blank 27604ef92fea063_9 fill in the blank 27604ef92fea063_10 Total units to be produced fill in the blank 27604ef92fea063_11 fill in the blank 27604ef92fea063_12 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. Round your answers to one decimal place, if necessary. LEVI STRAUSS & CO. Direct Labor Cost Budget May Inseam (minutes) Outerseam (minutes) Pockets (minutes) Zipper (minutes) Total Dockers® fill in the blank a9a3bd003005f89_1 fill in the blank a9a3bd003005f89_2 fill in the blank a9a3bd003005f89_3 fill in the blank a9a3bd003005f89_4 501 Jeans® fill in the blank a9a3bd003005f89_5 fill in the blank a9a3bd003005f89_6 fill in the blank a9a3bd003005f89_7 fill in the blank a9a3bd003005f89_8 Total minutes fill in the blank a9a3bd003005f89_9 fill in the blank a9a3bd003005f89_10 fill in the blank a9a3bd003005f89_11 fill in the blank a9a3bd003005f89_12 Total direct labor hours fill in the blank a9a3bd003005f89_13 fill in the blank a9a3bd003005f89_14 fill in the blank a9a3bd003005f89_15 fill in the blank a9a3bd003005f89_16 Direct labor rate $fill in the blank a9a3bd003005f89_17 $fill in the blank a9a3bd003005f89_18 $fill in the blank a9a3bd003005f89_19 $fill in the blank a9a3bd003005f89_20 Total direct labor cost $fill in the blank a9a3bd003005f89_21 $fill in the blank a9a3bd003005f89_22 $fill in the blank a9a3bd003005f89_23 $fill in the blank a9a3bd003005f89_24 $fill in the blank a9a3bd003005
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 120,000 and 250,000 pairs, respectively, for May. The finished goods inventory is assumed as follows: Dockers 501 Jeans May 1 estimated inventory 12,000 30,000 May 31 desired inventory 17,000 20,000 Assume the following direct labor data per 5 pairs of Dockers and 501 Jeans for four different sewing operations: Direct Labor per 5 Pairs Dockers 501 Jeans Inseam 15 minutes 10 minutes Outerseam 18 15 Pockets 6 4 Zipper 3 2 Total 42 minutes 31 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 27604ef92fea063_1 fill in the blank 27604ef92fea063_2 fill in the blank 27604ef92fea063_4 fill in the blank 27604ef92fea063_5 Total units fill in the blank 27604ef92fea063_6 fill in the blank 27604ef92fea063_7 fill in the blank 27604ef92fea063_9 fill in the blank 27604ef92fea063_10 Total units to be produced fill in the blank 27604ef92fea063_11 fill in the blank 27604ef92fea063_12 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. Round your answers to one decimal place, if necessary. LEVI STRAUSS & CO. Direct Labor Cost Budget May Inseam (minutes) Outerseam (minutes) Pockets (minutes) Zipper (minutes) Total Dockers® fill in the blank a9a3bd003005f89_1 fill in the blank a9a3bd003005f89_2 fill in the blank a9a3bd003005f89_3 fill in the blank a9a3bd003005f89_4 501 Jeans® fill in the blank a9a3bd003005f89_5 fill in the blank a9a3bd003005f89_6 fill in the blank a9a3bd003005f89_7 fill in the blank a9a3bd003005f89_8 Total minutes fill in the blank a9a3bd003005f89_9 fill in the blank a9a3bd003005f89_10 fill in the blank a9a3bd003005f89_11 fill in the blank a9a3bd003005f89_12 Total direct labor hours fill in the blank a9a3bd003005f89_13 fill in the blank a9a3bd003005f89_14 fill in the blank a9a3bd003005f89_15 fill in the blank a9a3bd003005f89_16 Direct labor rate $fill in the blank a9a3bd003005f89_17 $fill in the blank a9a3bd003005f89_18 $fill in the blank a9a3bd003005f89_19 $fill in the blank a9a3bd003005f89_20 Total direct labor cost $fill in the blank a9a3bd003005f89_21 $fill in the blank a9a3bd003005f89_22 $fill in the blank a9a3bd003005f89_23 $fill in the blank a9a3bd003005f89_24 $fill in the blank a9a3bd003005
Chapter7: Budgeting
Section: Chapter Questions
Problem 1PB: Lens & Shades sells sunglasses for $37 each and is estimating sales of 21,000 units in January and...
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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.
Question
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 120,000 and 250,000 pairs, respectively, for May. The finished goods inventory is assumed as follows:
| Dockers | 501 Jeans | |||
| May 1 estimated inventory | 12,000 | 30,000 | ||
| May 31 desired inventory | 17,000 | 20,000 |
Assume the following direct labor data per 5 pairs of Dockers and 501 Jeans for four different sewing operations:
| Direct Labor per 5 Pairs | ||||
| Dockers | 501 Jeans | |||
| Inseam | 15 | minutes | 10 | minutes |
| Outerseam | 18 | 15 | ||
| Pockets | 6 | 4 | ||
| Zipper | 3 | 2 | ||
| Total | 42 | minutes | 31 | 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 27604ef92fea063_1 | fill in the blank 27604ef92fea063_2 |
| fill in the blank 27604ef92fea063_4 | fill in the blank 27604ef92fea063_5 | |
| Total units | fill in the blank 27604ef92fea063_6 | fill in the blank 27604ef92fea063_7 |
| fill in the blank 27604ef92fea063_9 | fill in the blank 27604ef92fea063_10 | |
| Total units to be produced | fill in the blank 27604ef92fea063_11 | fill in the blank 27604ef92fea063_12 |
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. Round your answers to one decimal place, if necessary.
| LEVI STRAUSS & CO. | |||||
| Direct Labor Cost Budget | |||||
| May | |||||
| Inseam (minutes) | Outerseam (minutes) | Pockets (minutes) | Zipper (minutes) | Total | |
| Dockers® | fill in the blank a9a3bd003005f89_1 | fill in the blank a9a3bd003005f89_2 | fill in the blank a9a3bd003005f89_3 | fill in the blank a9a3bd003005f89_4 | |
| 501 Jeans® | fill in the blank a9a3bd003005f89_5 | fill in the blank a9a3bd003005f89_6 | fill in the blank a9a3bd003005f89_7 | fill in the blank a9a3bd003005f89_8 | |
| Total minutes | fill in the blank a9a3bd003005f89_9 | fill in the blank a9a3bd003005f89_10 | fill in the blank a9a3bd003005f89_11 | fill in the blank a9a3bd003005f89_12 | |
| Total direct labor hours | fill in the blank a9a3bd003005f89_13 | fill in the blank a9a3bd003005f89_14 | fill in the blank a9a3bd003005f89_15 | fill in the blank a9a3bd003005f89_16 | |
| Direct labor rate | $fill in the blank a9a3bd003005f89_17 | $fill in the blank a9a3bd003005f89_18 | $fill in the blank a9a3bd003005f89_19 | $fill in the blank a9a3bd003005f89_20 | |
| Total direct labor cost | $fill in the blank a9a3bd003005f89_21 | $fill in the blank a9a3bd003005f89_22 | $fill in the blank a9a3bd003005f89_23 | $fill in the blank a9a3bd003005f89_24 | $fill in the blank a9a3bd003005f89_25 |
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