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AutoSave OF A APO... Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Calibri (Body) v 12 AA 2 Wran Text General Insert v D Ayo [G Paste I U A Merge & Center % Delete Format Conditional Format Cell Formatting as Table Styles 6 Sensitivity v Sort & Filter Find & Select Analyze Data C1 1 x fx B D E F G H J K L 1 Comprehensive Problern Chapters 16-20 ReqC1. Complete a production cost repo 2 of one basic shirt? 3 The Tattered Threads Shirt Company makes two types of T-shirts: basic and custom. Basic shirts are plain shirts 4 without any screen printing on them. Custom shirts are created using the basic shirts and then adding a custom The 5 screen-printing design. Prod 6 7 The company buys cloth in various colors and then makes the basic shirts in two departments, Cutting and 8 Sewing. The company uses a process costing system (weighted average method) to determine the production cost of the basic shirts. In the Cutting Department, direct materials (cloth) are added at the beginning of the 9 process and conversion costs are added evenly through the process. In the Sewing Department, no direct UNITS 10 materials are added. The only additional material, thread, is considered an indirect material because it cannot Units to account for: 11 be easily traced to the finished product. Conversion costs are added evenly throughout the process in the Beg. WIP 12 Sewing Department. The finished basic shirts are sold to retail stores or are sent to the Custom Design Started in Production 13 Department for custom screen printing. Total Units to Account for 14 15 The Custom Design Department creates custom shirts by adding screen printing to the basic shirt. The Units accounted for: 16 department creates a design based on the customer's request and then prints the design using up to four Completed & trsf out 17 colors. Because these shirts have the custom printing added, which is unique for each order, the additional cost End WIP 18 incurred is determined using job order costing, with each custom order considered a separate job. Total units accounted for 19 20 For March 2021 the Tattered Threads Shirt Company compiled the following data for the Cutting and Sewing Directions Comprehensive Reg2 + Ready + 183% AutoSave OF A APO ... Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Calibri (Body v 12 v Al A 2 Wran Text General DE Insert v Delete Format v Ayo [G Paste A Merge & Center $ % Conditional Format Dell Formatting as Table Styles Sort & Filter Find & Select Analyze Data Sensitivity C1 xfx B D E F G H 1 J K L COSTS Costs to account for: Beg. WIP Costs added during period Total costs to account for total EUP Cost per EU 20 For March 2021 the Tattered Threads Shirt Company compiled the following data for the Cutting and Sewing Departments: 21 22 23 Department Item Amount Units 24 Cutting Beginning balance shirts 25 Started in March 1,411 shirts 26 Direct materials added in March 1,980 27 Conversion costs 1,380 28 Completed and transferred to Sewing ??? 1,411 shirts 29 Ending balance shirts Sewing Beginning balance, transferred in, $1458; 2,146 521 shirts 30 conversion costs, $688 31 Transferred in from Cutting ??? ??? 32 Conversion costs added in March 1,257 33 Completed and transferred to Finished Goods ??? 1,000 shirts 34 Ending balance, 63 complete ??? ??? 35 36 For the same time period, the Tattered Threads Shirt Company compiled the following data for the Custom 37 Design Department: - Costs accounted for: Completed & Trsf out Ending WIP Total costs accounted for 28 Directions Comprehensive Reg2 + Ready , + 83% AutoSave OF A APO ... Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments X [G Calibri (Body) v 12 v Al A 2 Wran Text General Insert v DE Ayo Delete Paste I U A Merge & Center $ % GB Conditional Format Cell Formatting as Table Styles Sort & Filter Format v Find & Select Sensitivity Analyze Data c1 1 J K L A B D E F G H 36 For the same time period, the Tattered Threads Shirt Company compiled the following data for the Custom 37 Design Department: 38 39 Job Quantity Design Fee Printing Status 40 367 400 Yes 3 colors Complete The Prod UNITS Units to account for: Beg. WIP Transferred in Total Units to Account for 41 368 150 No 2 colors Complete 42 369 100 Yes 5 colors Complete 43 370 500 Yes 4 colors Complete 44 45 The Tattered Threads Shirt Company has previously determined that creating and programming the design cost 46 84 per design. This is a one time charge. 47 48 If a customer places another order with the same design, the customer is not charged a second time. 49 50 Additionally, the cost to print is .25 per color per shirt. 51 52 Units accounted for: Completed & trsf out End WIP Total units accounted for 53 Requirements 54 C1. Complete a production cost report for the Cutting Department and the Sewing Department. What is the COSTS Costs to account for: Directions Comprehensive Reg2 + Ready E + 183% AutoSave OF A APO ... Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments X [G Calibri (Body) v 12 v Al A 2 Wran Text General Insert v D Ayo Paste A Merge & Center % Delete Format Conditional Format Cell Formatting as Table Styles Sensitivity v Find & Select Sort & Filter Analyze Data y C1 L J K COSTS Costs to account for: Beg. WIP Costs added during period Total costs to account for total EUP Cost per EU + xfx A B D E F G H 53 Requirements 54 C1. Complete a production cost report for the Cutting Department and the Sewing Department. What is the 55 cost of one basic shirt? 56 57 C2. Determine the total cost and the average cost per shirt for jobs 367, 368, 369, and 370. If the company set 58 the sales price at 225% of the total cost, determine the total sales price of each job. 59 60 C3. In addition to the custom jobs, the Tattered Threads Shirt Company sold 1250 basic shirts. If the company 61 set the sales price at 140% of the cost, determine the sales price per unit, total sales revenue, total cost of 62 goods sold, and total gross profit for the basic shirts. 63 **(assume the beginning balance in Finished Goods Inventory is sufficient to make these sales, and the unit 64 cost of the basic shirts in Finished Goods Inventory is the same as the unit cost incurred this month) 65 66 C4. Calculate the total revenue, total cost of goods sold, and total gross profit for all sales, basic and custom. 67 68 C5. Assume the company sold only basic shirts (no custom designs) and incurred fixed costs of $790 per month. a. Calculate the contribution margin per unit, contribution margin ratio, required sales in units to break 70 even, and required sales in dollars to break even. 71 b. Determine the margin of safety in units and dollars. C. Suppose the Tattered Threads Shirt Company wants to earn an operating income of $1240 per month. 73 Compute the required sales in units and dollars to achieve this profit goal. Costs accounted for: Completed & Trsf out Ending WIP Total costs accounted for Cost of one basic shirt = $ 69 72 74 Directions Comprehensive Reg2 + Ready 183% AutoSave OF A APO ... Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Calibri (Body) v 12 AA 2 Wran Text General Insert v DE Ayo [G Delete Paste B 1 A Merge & Center $ % Conditional Format Cell Formatting as Table Styles Sensitivity Format v Sort & Filter Analyze Data y Find & Select C1 2 x fx B D E F G H 1 J K L 61 set the sales price at 140% of the cost, determine the sales price per unit, total sales revenue, total cost of 62 goods sold, and total gross profit for the basic shirts. 63 **(assume the beginning balance in Finished Goods Inventory is sufficient to make these sales, and the unit 64 cost of the basic shirts in Finished Goods Inventory is the same as the unit cost incurred this month) 65 66 C4. Calculate the total revenue, total cost of goods sold, and total gross profit for all sales, basic and custom. Costs accounted for: Completed & Trsf out Ending WIP Total costs accounted for 67 Cost of one basic shirt = $ 68 C5. Assume the company sold only basic shirts (no custom designs) and incurred fixed costs of $790 per month. 69 a. Calculate the contribution margin per unit, contribution margin ratio, required sales in units to break 70 even, and required sales in dollars to break even. 71 b. Determine the margin of safety in units and dollars. 72 c. Suppose the Tattered Threads Shirt Company wants to earn an operating income of $1240 per month. 73 Compute the required sales in units and dollars to achieve this profit goal. 74 75 C6. The Tattered Threads Shirt Company is considering adding a new product line, a cloth shopping bag with 76 custom screen printing that will be sold to grocery stores. If the current market price of cloth shopping bags is 77 $2.12 and the company desires a net profit of 62% what is the target cost? 78 The company estimates the full product cost of the cloth bags will be $0.70. Should the company manufacture 79 the cloth bags? Why or why not? 80 81 C2. Determine the total cost and the av sales nrira at 2250% of Job LE COSTS: 82 Racir chirt Directions Comprehensive Reg2 + Ready 83% AutoSave OF A APO... Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Calibri (Body) v 12 v A A 2 Wran Text General Insert v DE Ayo [G Delete Paste A Merge & Center % So Conditional Format Cell Formatting as Table Styles Sensitivity Format v Sort & Filter Find & Select Analyze Data C1 R H K L M N 0 P a 1 Req C1. Complete a production cost report for the Cutting Department and the Sewing Department. What is the cost 2 of one basic shirt? 3 shirts are plain shirts 4 hen adding a custom The Tattered Threads Shirt Company 5 Production Cost Report-Cutting Dept 6 Month Ended March 2021 7 ints, Cutting and 8 line the production Equivalent Units beginning of the Direct Conversion 9 nent, no direct UNITS Whole Units Materials Costs 10 al because it cannot Units to account for: 11 ! process in the 12 tom Design Started in Production 1,411 13 Total Units to Account for 1,411 14 15 ic shirt. The Units accounted for: 16 Ising up to four Completed & trsf out 1,411 1,411 17 r, the additional cost End WIP 18 ate job. Total units accounted for 1,411 1,411 19 20 utting and Sewing Beg. WIP Directions Comprehensive Req2 + Ready , 183% AutoSave AAP 2 O... Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Calibri (Body) X [G v 12 v P A Wran Text General Insert v 4 12 Ayo Delete Paste 1 A --- Merge & Center % w Conditional Format Dell Formatting as Table Styles Sensitivity Format v Ov Sort & Filter Find & Select Analyze Data C1 4 x fx 1 j K L M N O P Q R S H 20 nd Sewing Direct Materials Conversion Costs Total Costs 21 22 23 24 hirts 25 hirts 26 27 COSTS Costs to account for: Beg. WIP Costs added during period Total costs to account for total EUP Cost per EU 3,360 3,360 1,980 1,980 1,411 1.40 $ 1,380 1,380 1,411 0.98 $ 28 hirts Costs accounted for: 29 hits shirts 30 31 1,980 1,380 3,360 Completed & Trsf out Ending WIP Total costs accounted for 32 $ 1,980 $ 1,380 $ 3,360 33 shirts 34 35 36 : Custom 37 The Tattered Threads Shirt Company Production Cost Report-Sewing Dept Month Ended March 38 Directions Comprehensive Reg2 + Ready . + 183% AutoSave OF A APO... Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Calibri (Body) v 12 ~ A A 2 Wran Text General Insert v DE Ayo [G Delete Paste B 1 A Merge & Center $ % Conditional Format Cell Formatting as Table Styles Format v Sort & Filter Sensitivity Find & Select Analyze Data c1 4 x fx 1 j K L M N o Q R S . 35 36 he Custom 37 The Tattered Threads Shirt Company Production Cost Report-Sewing Dept Month Ended March 38 39 40 Equivalent Units Transferred Direct Conversion in Materials Costs 41 Whole Units UNITS Units to account for: Beg. WIP Transferred in Total Units to Account for 521 1,411 1,932 42 43 44 45 the design cost 46 47 48 ime. 49 50 Units accounted for: Completed & trsf out End WIP Total units accounted for 1,000 932 1,932 n/a n/a n/a 1,000 587 1,587 51 52 Direct Materials Conversion Costs Total Costs 53 54 What is the Directions Ready COSTS Costs to account for: Comprehensive Req2 + E + 83% AutoSave OF A APO... Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Insert v Calibri (Body) v 12 v P A 2 Wran Text General * DE AYO [G Delete Paste A --- $ Merge & Center % Sort & Conditional Format Cell Formatting as Table Styles Sensitivity Format v Find & Select Analyze Data Filter y C1 2 x fx H 1 J L M N 0 Q R 52 Direct Materials Conversion Costs Total Costs Beg. WIP $ 1,458.00 3,360 4,818 1,932 $ 2.49 n/a n/a n/a n/a n/a 688 1,257 1,945 1,587 1.23 2,146 4,617 6,763 $ 53 COSTS 54. What is the Costs to account for: 55 56 Costs added during period 57 e company set Total costs to account for 58 total EUP 59 Cost per EU 60 If the company 61 tal cost of Costs accounted for: 62 Completed & Trsf out 63 and the unit Ending WIP 64 onth) Total costs accounted for 65 66 : and custom. 67 68 $790 per month. Cost of one basic shirt = $ 69 lits to break 70 71 72 0 per month. Comprehensive Req2 Ready 2490.00 2321.00 4,811 n/a n/a n/a 1,230 722 1,952 $ 3,720 3,043 6,763 $ $ 2.49 Directions + . 183% AutoSave OF A APO... Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Calibri (Body) v 12 ~ A A 2 Wran Text General Insert v 3D AYO [G Delete Paste A Merge & Center $ % Conditional Format Cell Formatting as Table Styles Format v Sort & Filter v Find & Select Sensitivity Analyze Data C1 xfx H R j K L M N 0 Q C2. Determine the total cost and the average cost per shirt for jobs 367, 368,369, and 370. If the company set the sales price at 225% of the total cost, determine the total sales price of each job. 77 78 any manufacture 79 80 367 368 369 370 TOTALS 81 82 $ 558 $ 83 Job COSTS: Basic shirt Design Cost Printing Cost Total Cost Cost per shirt Sales Price per shirt Total Sales 1,488 $ 84.00 300.00 1,872 4.68 15.21 6,084 $ 372 $ 84.00 125.00 581 5.81 18.88 1,888 $ 75.00 633 4.22 13.72 2,057 $ 1,860 84.00 500.00 2,444 $ 4.89 15.89 7,943 $ 5,530 $ 17,973 84 85 86 87 88 89 90 91 92 93 94 95 96 97 C3. In addition to the custom jobs, the Tattered Threads Shirt Company sold 1250 basic shirts. If the company set the sales price at 140% 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. **(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) Sales price per unit $ 435.78 ao Directions Comprehensive Reg2 + Ready 183% AutoSave OF A APO... Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Calibri (Body) v 12 v Al A 2 Wran Text General v Insert v 12 Ayo [G Paste A Merge & Center % $ Sort & Delete Format Conditional Format Cell Formatting as Table Styles Sensitivity v Find & Select Ov Analyze Data C1 xfx H 1 J K L M N 0 P Q R S 95 96 the basic shirts in Finished Goods Inventory is the same as the unit cost incurred this month) 97 Sales price per unit $ 435.78 Total Sales Revenue Total COGS Total GP 17973.00 6763.00 $ 17,973.00 C4. Calculate the total revenue, total cost of goods sold, and total gross profit for all sales, basic and custom. 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 Sales Revenue COGS GP Custom Shirts $ 9,330 5,200 14,530 Basic Shirts $ 16,794 $ 6,500 23,294 Totals 26,124 11,700 C5. Assume the company sold only basic shirts (no custom designs) and incurred fixed costs of $790 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. Directions ARA Comprehensive Req2 + Ready : 83% AutoSave OF A APO... Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Calibri Body v 12 v P A ab Wran Text General Insert v X [G DE Y Delete Paste 1 A Merge & Center $ % Conditional Format Cell Formatting as Table Styles Sort & Filter Format v Find & Select Sensitivity Analyze Data y C1 x fx H 1 K L M N O P 0 R S 112 113 114 115 C5. Assume the company sold only basic shirts (no custom designs) and incurred fixed costs of $790 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. 116 CM per units $ 5.00 Req. sales in units 500 shirts CM Ratio 4% Req sales in $ = $ 1.00 b. Determine the margin of safety in units and dollars. Margin of safety in units = 800 shirts 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 Margin of safety in $= 4000 c. Suppose the Tattered Threads Shirt Company wants to earn an operating income of $1240 per month. Compute the required sales in units and dollars to achieve this profit goal. Req. sales in units= 8,500 132 Req. sales in $ = $ 1,700 133 Directions Comprehensive Reg2 + Ready 183% AutoSave OF A APO ... ow Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Calibri (Body v 12 2 Wran Text General Insert v X [G 4 12 Y Delete v Paste A Merge & Center % $ GB Sort & Conditional Format Cell Formatting as Table Styles Format Sensitivity Find & Select v Analyze Data C1 x fx H 1 J K L M N 0 Q R S C. Suppose the Tattered Threads Shirt Company wants to earn an operating income of $1240 per month. Compute the required sales in units and dollars to achieve this profit goal. 126 127 128 129 130 131 132 133 134 Req. sales in units= 8,500 Req. sales in $ = $ 1,700 135 136 137 138 139 C6. The Tattered Threads 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 $2.12 and the company desires a net profit of 62% what is the target cost? The company estimates the full product cost of the cloth bags will be $0.70. Should the company manufacture the cloth bags? Why or why not? 140 0.94 141 142 143 144 145 Target Cost Should they produce the bags? $ No Explanation: 146 147 Directions Comprehensive Req2 + Ready 83% B D E F G H The Tattered Threads Shirt Company makes two types of T-shirts: basic and custom. Basic shirts are plain shirts without any screen printing on them. Custom shirts are created using the basic shirts and then adding a custom screen-printing design. 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 (weighted-average method) to determine the production cost of the basic shirts. In 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 Sewing Department, no direct materials are 10 added. The only additional material, thread, is considered an indirect material because it cannot be easily traced 11 to the finished product. Conversion costs are added evenly throughout the process in the Sewing Department. 12 The finished basic shirts are sold to retail stores or are sent to the Custom Design Department for custom screen 13 printing. 14 15 The Custom Design Department creates custom shirts by adding screen printing to the basic shirt. The 16 department creates a design based on the customer's request and then prints the design using up to four colors. 17 Because these shirts have the custom printing added, which is unique for each order, the additional cost incurred 18 is determined using job order costing, with each custom order considered a separate job. 19 20 For March 2021 the Tattered Threads Shirt Company compiled the following data for the Cutting and Sewing Departments: 21 22 23 Department Item Amount Units 24 Cutting Beginning balance shirts 25 Started in March 1,411 shirts 26 Direct materials added in March 1,980 27 Conversion costs 1,380 28 Completed and transferred to Sewing ??? 1,411 shirts 29 Ending balance shirts Sewing Beginning balance, transferred in, $1458, 2,146 521 shirts 30 conversion costs, $688 31 Transferred in from Cutting ??? ??? 32 Conversion costs added in March 1,257 33 Completed and transferred to Finished Goods ??? 1,000 shirts 34 Ending balance, 63 complete ??? 222 35 36. For the came time norind the Tattoo Threads Shirt Comanu omnited the followine data for the Cucom Directions A Comprehensive Reg2 . + co Tot 36 For the same time period, the Tattered Threads Shirt Company compiled the following data for the Custom 37 Design Department: 38 39 Job Quantity Design Fee Printing Status 367 400 Yes 3 colors Complete 40 43 41 368 150 No 2 colors Complete 42 369 100 Yes 5 colors Complete 370 500 Yes 4 colors Complete 44 45 The Tattered Threads Shirt Company has previously determined that creating and programming the design cost 46 84 per design. This is a one time charge. 47 48 If a customer places another order with the same design, the customer is not charged a second time. 49 50 Additionally, the cost to print i 25 per color per shirt 51 52 53 Requirements 54 C1. Complete a production cost report for the Cutting Department and the Sewing Department. What is the cost 55 of one basic shirt? UU 56 57 c2. Determine the total cost and the average cost per shirt for jobs 367, 368, 369, and 370. If the company set 58 the sales price at 225% of the total cost, determine the total sales price of each job. c 59 + 65 60 C3. In addition to the custom jobs, the Tattered Threads Shirt Company sold 1250 basic shirts. If the company set 61 the sales price at 140% of the cost, determine the sales price per unit, total sales revenue, total cost of goods sold, 62 and total gross profit for the basic shirts. 63 **(assume the beginning balance in Finished Goods Inventory is sufficient to make these sales, and the unit cost 64 of the basic shirts in Finished Goods Inventory is the same as the unit cost incurred this month) 66 C4. Calculate the total revenue, total cost of goods sold, and total gross profit for all sales, basic and custom 67 68 C5. Assume the company sold only basic shirts (no custom designs) and incurred fixed costs of $790 per month. a Calculate the contribution maroin per unit contribution marein ratio required sales in units to break even Directions Comprehensive A Req2 Ready Tot 69 Cost + C3. In addition to the custom jobs, the Tattered Threads Shirt Company sold 1250 basic shirts. If the company set the sales price at 140% 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. **(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) Sales price per unit $ 435.78 Total Sales Revenue Total COGS Total GP 17973.00 6763.00 $ 17,973.00 C4. Calculate the total revenue, total cost of goods sold, and total gross profit for all sales, basic and custom. Sales Revenue COGS GP Custom Shirts $ 9,330 5,200 14,530 Basic Shirts Totals $ 16,794 $ 26,124 6,500 11,700 23,294 C5. Assume the company sold only basic shirts (no custom designs) and incurred fixed costs of $790 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 beak even. CM per unit 5.00 Req, sales in units 500 shirts CM Ratios 4% Reg sales in $ $ 1.00 b. Determine the margin of safety in units and dollars. Margin of safety in units 800 shirts Margin of safety in $ 4000 c. Suppose the Tattered Threads Shirt Company wants to earn an operating income of $1240 per month. Compute the required sales in units and dollars to achieve this profit goal. Comprehensive A Rand 3 M N 0 b. Determine the margin of safety in units and dollars. Margin of safety in units - 800 shirts Margin of safety in s 4000 c. Suppose the Tattered Threads Shirt Company wants to earn an operating income of $1240 per month. Compute the required sales in units and dollars to achieve this profit goal. Req. sales in units 8,500 Req. sales in $ - 1,700 06. The Tattered Threads 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 $2.12 and the company desires a net profit of 62% what is the target cost? The company estimates the full product cost of the cloth bags will be $0.70. Should the company manufacture the cloth bags? Why or why not? $ No 0.94 Target Cost Should they produce the bags? Explanation: prehensive Req2 +
