Jumpin Jeans produces various models of jeans in three departments, namely cutting, sewing and packing. During the month, the three departments recorded the following expenses:

Tailoring Cutting Packing

Direct materials $1,800 $300. $75

Direct Labor 50 600 300

Overhead charged 250 1,200 300

Three hundred pairs of jeans were completed during the month.

Requested:

a. Create a report showing, for each department, the cost of direct materials, direct labor, OH charged, products transferred in from the previous department, and the total cost of production.

b. Calculate the transferred costs and their journal entries

(i) from cutting department to sewing

(ii) from the sewing department to the packing

(iii) from packing department to finished goods

c. What is the unit cost for a pair of pants?