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Question: The jacksonville shirt company makes two types of shirts, basic and custom. basic shirts= plain a...

the jacksonville shirt company makes two types of shirts, basic and custom. basic shirts= plain and no screen printing on them custom= plan with screen printing on them the company buys cloth in various colors and then makes the basic shirts in two departments, cutting and sewing. the company uses a proccess 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 dept. no direct materials are added. the only additional material, thread, is considered an indirect material because it can not be easily traced to the finnished product. convcersion costsare added evenly through the process in thye sewing dept. the finnished basinc shirts are sold to retail stores or are sent to the custom design deptart,ment for custom screen printing. the custom design dpt. created custom shirts by adding screen printing to the basic shirt. the dept. creates a design based on the customers request and the prints the design using up to 4 colors. becasue 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 seprate job. for march 2018, the jacksonville shirt company compiled teh folllowing data for the cutting and sewing dpts. Comprehensive Problem Part 1 for Chapters 16 - 20 Requirements 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 367, 368, 369, and 370. If the company set the sales price at 200% of the total cost, determine the total sales price of each job. 3. In addition to the custom jobs, the Jacksonville Shirt Company sold 1,000 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 125% 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 and total cost of goods sold for all sales, basic and custom. 5. Assume the company sold only basic shirts (no custom designs) and incurred fixed costs of $700 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 Jacksonville Shirt Company CVP relationships. Show the break even point, the sales in revenue line, the fixed cost line, the total cost line, the operating loss area, and the operating income area. d. Suppose the Jacksonville Shirt Company wants to earn an operating income of $1,000 per month. Compute the required sales in units and dollars to achieve this profit goal. 6. The Jacksonville 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 $2.25 and the company desires a net profit of 60%, what is the target cost? The company estimates the full product cost of the cloth bags will be $0.80. Should the company manufacture the cloth bags? Why or why not?

Meme COMPREHENSIVE PROBLEM , Comprehensive Problem for Chapters 16-20 The Jackville Shint Company akes wo types of Tshis ba and c his ane plain shins without any scen princing on dhem Custom shis ane Th company buys cloth in various olo and dhen makes he hasic shiin o departments, Cunrinyg and Sewing The company unes a proces coting weighnod-average method) to desermine the Cuting Department, iecs mascrials (dloth) ane addled at the beginning of dhe peocess peoduction cot of the basic shirns In de coms ane added evenly through the process In the Sewing Depa ment, no direct materials are adled. The only addional material, heead, is coide n indirect material becaone i cannot be cily teaced o the finished peodac Cover he process in dhe Sewing Depanment The finished basic shiets ane soild to retail stones or ane sen so the Cunom Design Depans ment for custom screen printing ing to the bsic shirt. The departmen eass a design ba on he comerk eques and then prits the desijgn using up so four coloes Because these shirs have theu tom printing added, which is unique for each onder, the addisional cot incurred is For Manch 2018, the Jacksonville Shin Company compiled the following das for the Cutting and Sewing Departmenes Amount Cutting Beginning balance 0 shirts 1200 shirts Started in March Direct materials added in Manch Conversion costs Completed and transfemed to Sewing Ending balance ,920 1320 71,200 shits Sewing Beginning balance, tranaferned in $1,350 2,000 500 shirts conversion costs $650 Transfemed in from Cutting Conversion costs added in Marh Completed and transferred to Finished Goodsm Idrg balance, 60% complete 1,196 1,000 sht 7m for tdhe Castom Design Deparsment ob Quantity Design Fee Printing Stat 367 400 368 150 369 100 70 500 Yes 3 colors Complete 2 colors Compiete Yes 5 colors Complete 4 colors Complete oOO Meme COMPREHENSIVE PROBLEM , Comprehensive Problem for Chapters 16-20 The Jackville Shint Company akes wo types of Tshis ba and c his ane plain shins without any scen princing on dhem Custom shis ane Th company buys cloth in various olo and dhen makes he hasic shiin o departments, Cunrinyg and Sewing The company unes a proces coting weighnod-average method) to desermine the Cuting Department, iecs mascrials (dloth) ane addled at the beginning of dhe peocess peoduction cot of the basic shirns In de coms ane added evenly through the process In the Sewing Depa ment, no direct materials are adled. The only addional material, heead, is coide n indirect material becaone i cannot be cily teaced o the finished peodac Cover he process in dhe Sewing Depanment The finished basic shiets ane soild to retail stones or ane sen so the Cunom Design Depans ment for custom screen printing ing to the bsic shirt. The departmen eass a design ba on he comerk eques and then prits the desijgn using up so four coloes Because these shirs have theu tom printing added, which is unique for each onder, the addisional cot incurred is For Manch 2018, the Jacksonville Shin Company compiled the following das for the Cutting and Sewing Departmenes Amount Cutting Beginning balance 0 shirts 1200 shirts Started in March Direct materials added in Manch Conversion costs Completed and transfemed to Sewing Ending balance ,920 1320 71,200 shits Sewing Beginning balance, tranaferned in $1,350 2,000 500 shirts conversion costs $650 Transfemed in from Cutting Conversion costs added in Marh Completed and transferred to Finished Goodsm Idrg balance, 60% complete 1,196 1,000 sht 7m for tdhe Castom Design Deparsment ob Quantity Design Fee Printing Stat 367 400 368 150 369 100 70 500 Yes 3 colors Complete 2 colors Compiete Yes 5 colors Complete 4 colors Complete oOO