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COMPREHENSIVE PROBLEM Comprehensive Problem for Chapters 18-21 The Savannah Shirt Company makes two types of T-shirts: basic and custom. Basic them. Custom shirts are created

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COMPREHENSIVE PROBLEM Comprehensive Problem for Chapters 18-21 The Savannah Shirt Company makes two types of T-shirts: basic and custom. Basic them. Custom shirts are created shirts are plain shirts without any screen printing on using the basic shirts and then adding a custom screen printing design e company buys cloth in various colors and then makes the basic shirts in The 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 inning of the beg process and conversion costs are added evenly through the process. In the 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 finished product. Conversion costs are added evenly throughout the process in the Sewing Department. The finished basic shirts are sold to retail stores or are sent to the Custom Design Department for custom screen printing The Custom Design Department creates custom shirts by adding screen printing to the basic shirt. The department creates a design based on the customer's request 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 is determined using job order costing with each custom order considered a separate job

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