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Cashmere Textile Co. manufactures high quality textile products. We are in need of cost information of a new batch of fan pullovers 24.000 Pcs.

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Cashmere Textile Co. manufactures high quality textile products. We are in need of cost information of a new batch of fan pullovers 24.000 Pcs. and coded as BGF001. The order is received in February and began to production in the beginning of March. The wools are knitted in the Knitting department, sewed in the Sewing department, then after ironing and packaging delivered to Marketing department for sale on 25th of March. Compute the unit cost of the pullovers and the sale price with a profit of 70% on sale price. The wool purchase and use information of the related colors of BGF001 are shown below (Direct material cost will be computed to get the highest accurate results): I Purchase Dates Unit Cost (S) Quantity (Kg) 1/3 30 4000 7/3 32 5500 19/3 35 5600 Using Dates Unit Cost (S) Quantity (Kg) 3/3 3300 13/3 3600 18/3 2000 29/3 3200 The direct labor cost has to be computed by departments and days worked for BGF001. There are 40 employees in the Knitting department with $1,800 a month and worked 12 days, 28 employees in Sewing with $1,600 a month and worked 8 days, 80 employees in Ironing and Packaging with $800 a month and worked 5 days. The company has 3 producing departments and 3 service departments. The names of the departments, their first allocation total costs and their cost drivers are shown below, second allocation will be computed with the most reliable method you know. Cost Centers 1.Allocation Cost Totals Cost Drivers Machine Hours KWH Workers Knitting Sewing 24.000 5 32.000 $ 600 1400 22.000 40 16.000 2N Ironing & Packaging 46.000 S 400 34.000 80 Maintenance Dept 18.000 5 DMH 210 4000 6 Energy 42.000 S KWH 400 1000 2 Social Services 80.000 S Workers 10 1000 S Among the different production goods order BGF001 will be participated to the overheads by Labor Days worked in Knitting department; weight of the Direct Material in Sewing department where 42.000 Kg are sewed in the period; the number of the goods fully completed in Ironing and Packaging department which are 76.000 Pcs in total. *** GOOD LUCK ***

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