1.

Complete a production cost report for the Cutting Department and the Sewing Department. What is the cost of one basic?shirt?

2.

Determine the total cost and the average cost per shirt for jobs

367367?, 368368?, 369369?, and 370370. If the company set the sales price at 180180?% of the total?cost, determine the total sales price of each job.

3.

In addition to the custom?jobs, the Raleigh Shirt Company sold 1,3001,300 basic shirts?(assume the beginning balance in Finished Goods Inventory is sufficient to make these?sales, and the unit cost of the basic shirts in Finished Goods Inventory is the same as the unit cost incurred this?month). If the company set the sales price at 160160?% of the?cost, determine the sales price per?unit, total sales?revenue, total cost of goods?sold, and total gross profit for the basic shirts.

4.

Calculate the total?revenue, total cost of goods?sold, and total gross profit for all?sales, basic and custom.

5.

Assume the company sold only basic shirts?(no custom?designs) and incurred fixed costs of $2,400 per month.

a.

Calculate the contribution margin per?unit, contribution margin?ratio, required sales in units to break?even, and required sales in dollars to break even.

b.

Determine the margin of safety in units and dollars.

c.

Graph

Raleigh Shirt?Company's CVP relationships. Show the break even ?point, the sales revenue?line, the fixed cost?line, the total cost?line, the operating loss?area, and the operating income area.

d.

Suppose the Raleigh Shirt Company wants to earn an operating income of $3,000 per month. Compute the required sales in units and dollars to achieve this profit goal.

6.

The Raleigh Shirt Company is considering adding a new product?line, a cloth shopping bag with custom screen printing that will be sold to grocery stores. If the current market price of cloth shopping bags is $1.881.88 and the company desires a net profit of 6060?%, what is the target?cost? The company estimates the full product cost of the cloth bags will be $0.85. Should the company manufacture the cloth?bags? Why or why?not?

i More Info i Data Table X Basic shirts are plain shirts without any screen printing on them. Custom shirts are Department Item Amount Units i Data Table created using the basic shirts and then adding a custom screen printing design. Cutting Beginning balance $ 0 0 shirts The company buys cloth in various colors and then makes the basic shirts in two departments, Cutting and Sewing. The company uses a process costing system Started in March 1,400 shirts (weighted-average method) to determine the production cost of the basic shirts. In Direct materials added in March 2,940 Job Quantity Design Fee Printing Status the Cutting Department, direct materials (cloth) are added at the beginning of the process and conversion costs are added evenly through the process. In the Conversion costs 1,960 367 50 Yes 2 colors Complete Sewing Department, no direct materials are added. The only additional material, thread, is considered an indirect material because it cannot be easily traced to the Completed and transferred to Sewing ??? 1,400 shirts 368 100 No 5 colors Complete 369 Yes finished product. Conversion costs are added evenly throughout the process in the Ending balance 0 0 shirts 400 3 colors Complete Sewing Department. The finished basic shirts are sold to retail stores or are sent to Sewing Beginning balance, transferred in, $350; 370 200 Yes 5 colors Complete the Custom Design Department for custom screen printing. conversion costs, $150 $ 500 100 shirts The Raleigh Shirt Company has previously determined that creating and The Custom Design Department creates custom shirts by adding screen printing to Transferred in from Cutting ??? ??? programming the design cost $40 per design. This is a one-time charge. If a the basic shirt. The department creates a design based on the customer's request customer places another order with the same design, the customer is not and then prints the design using up to four colors. Because these shirts have the custom printing added, which is unique for each order, the additional cost incurred Conversion costs added in March 1,950 charged a second time. Additionally, the cost to print is $0.50 per color per s determined using job order costing, with each custom order considered a Completed and transferred to Finished Goods ??? 1,300 shirts shirt. separate job. Ending balance, 50% complete ??? ?22 Print Done