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CengageNOWv2 | Online teaching and leaming sesource from Cengage learning Intemet Explore Two Leg Company manufactures slacks and jeans under a variety of brand names, such as kKickers and 101 Denims. Slacks and jears are assembled by a variety of different sewing operations. Assurme that the sales budget for Kickers and 101 Denimes shows estimated sales of 21,610 and 30,640 pairs, respectively, for March 2016. The finished goods inventory is assumed as follows: Kickers 101 Denims March 1 estimated inventory March 31 desired inventory 970 1,430 360 1,790 Assume the following direct labor data per 10 pairs of Kickers and 101 Denims for four déferent sewing operations: Direct Labor per 10 Pairs Kickers 101 Denims 19 minutes 13 minutes Irseam Outerseam23 Pockets Zipper Total a. Prepare a production budget for March 16 60 minutes 45 minutes Two-Leg Company

Explanation / Answer

Production Budget

Direct labour cost budget

Particulars Kickers ($) 101 Denim ($) Sales 21610 50640 Add: Ending Inventory 360 1790 TotalUnits 21970 52430 Less: Beggining Inventory 970 1430 Total units Produced 21000 51000

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