Horngren's Accounting The Managerial chapters11th edition. Chapter 21 COMPREHENSIVE PROBLEMS FOR CHAPTER 18-21, QUESTION

Please Answer #5, A,B,C,D

Comprehensive Problem For Chapters 18 - 21
	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 160% of the total cost, determine the total sales price of each job.
	3.	In addition to the custom jobs, the Savannah Shirt Company sold 1,250 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 140% of the cost, determine the sale price per unit, total sales revenue, and the total cost of goods sold 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 $1,403 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 Savannah 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 Savannah Shirt Company wants to earn an operating income of $4,100 per month. Compute the required sales in units and dollars to achieve this profit goal.
	6.	The Savannah 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 $1.25 and the company desires a net profit of 40%, what is the target cost? The company estimates the full product cost of the cloth bags will be $0.60. Should the company manufacture the cloth bags? Why or why not?

For March 2016, the Savannah Shirt Company compi mpany compiled the following dara for the Cutting and Sewing Departments: Units Amount Department Item O shirts Beginning balance Started in March Direct materials added in March Conversion cosls Completed and transferred to Sewing Eriding balarice Beginning balance, transferred in, $1,225 Cutting 1,500 shirts 4,905 2.445 7?? 1,500 shirts 0 shirts Sewing 250 shirts ?7? 1,525 conversion costs, $300 Transferred in from Cutting Conversion costs added in March Completed and transferred to Finished Goods Ending balance, 75% complete $1,650 1,250 shirts ?7? 277 1,250 shirts ??? 7?? For the same time period, the Savannah Shirt Company compiled the following data for the Custom Design Department: Job Quantity Design Fee Printing Status 367 50 368 250 369 150 370 100 Yes No Yes Yes 4 colors Complete 2 colors Complete 3 colors Complete 2 colors Complete The Savannah Shirt Company has previously determined that creating and programming the design cost $75 per design. This is a one-time charge. If a custo places another order with the same design, the customer is not charged a second Additionally, the cost to print is $0.50 per color per shirt. Requirements 1. Complete a production cost report for the Cutting Department and the Sew