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Production and Direct Labor Cost Budgets Two-Leg Company manufactures slacks and jeans under a variety of brand names, such as Kickers and 101 Denims. Slacks and jeans are assembled by a variety of different sewing operations. Assume that the sales budget for Kickers and 101 Denims shows estimated sales of 24,690 and 53,620 pairs, respectively, for May. The finished goods inventory is assumed as follows: Kickers 101 Denims May 1 estimated inventory 1,100 1,510 May 31 desired inventory 410 1,890 Assume the following direct labor data per 10 pairs of Kickers and 101 Denims for four different sewing operations: Direct Labor per 10 Pairs Kickers 101 Denims Inseam 20 minutes 14 minutes Outerseam Pockets Zipper 11 24 17 8 10 7 Total 63 minutes 48 minutes a. Prepare a production budget for May. Two-Leg Company Production Budget May (assumed data) Kickers Expected units to be sold 101 Denims Total units Total units to be produced b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $10 wage per hour for the Inseam and outerseam sewing operations and a $16 wage per hour for the pocket and zipper sewing operations. Two-Leg Company Direct Labor Cost Budget May (assumed data) Inseam Outerseam Pockets Zipper Total Hours required for production: Kickers 101 Denims Total minutes Convert minutes to hours Hourly rate Total direct labor cost P1 Cost of Goods Sold Budget Wilmington Chemical Company uses oil to produce two types of plastic products, P1 and P2. Wilmington budgeted 16,400 barrels of oil for purchase in June for $68 per barrel. Direct labor budgeted in the chemical process was $122,700 for June. Factory overhead was budgeted $200,700 during June. The inventories on June 1 were estimated to be: Oil $8,600 5,800 4,900 Work in process 7,100 The desired inventories on June 30 were: $9,400 5,300 P2 4.700 Work in process 7,400 P2 oll P1 Use the preceding information to prepare a cost of goods sold budget for June. Wilmington Chemical Company Cost of Goods Sold Budget For the Month Ending June 30 Direct materials

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