need help with requirement 5b 5c 5d and 6
Cutting Department Amount Units Beginning balance $00 shirts Started in March 2,000 shirts Direct materials added in March 3,200 Conversion costs 2,200 Completed and transferred to Sewing ??? 2,000 shirts Ending balance 00 shirts Data table The New Orleans Shirt Company has previously determined that creating and programming the design cost $100 per design. This is a one-time charge. If a customer places another order with the same design, the customer is not charged a second time. Additionally, the cost to print is $0.40 per color per shirt. 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 150% of the total cost, determine the total sales price of each job. 3. In addition to the custom jobs, the New Orleans Shirt Company sold 1,900 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, total cost of goods sold, and total gross profit for all sales, basic and custom. 5. Assume the company sold only basic shirts (no custom designs) and incurred fixed costs of $500 per month. a. Calculate the contribution margin per unit, contribution margin ratio, retired 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 New Orleans Shirt Company's CVP relationships. Show the breakeven point, the sales revenue line, the fixed cost line, the total cost line, the operating loss area, and the operating income area. d. Suppose the New Orleans Shirt Company wants to earn an operating income of $1,800 per month. Compute the required sales in units and dollars to achieve this profit goal. 6. The New Orleans 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 $1.00 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 $0.80. Should the company manufacture the cloth bags? Why or why not
