Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE do this one correctly!! And make it neat, with the tables and names next to it! The last person didn't do it right. The

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

PLEASE do this one correctly!! And make it neat, with the tables and names next to it! The last person didn't do it right.

The Little Rock Shirt Company makes two types of T-shirts: basic and custom. (Click the icon to view the additional information.) For March 2024, the Little Rock Shirt Company compiled the following data for the Cutting and Sewing Departments: (Click the icon to view the Cutting data.) (Click the icon to view the Sewing data.) For the same time period, the Little Rock Shirt Company compiled the following data for the Custom Design Department: (Click the icon to view the Custom Design data.) Read the requirements. Requirement 1. Complete a production cost report for the Cutting Department and the Sewing Department. What is the cost of one basic shirt? other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production.) additional information.) More info Basic shirts are plain shirts without any screen printing on them. Custom shirts are created using the basic shirts and then adding a custom screen printing design. The company buys cloth in various colors and then makes the basic shirts in 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 beginning of the 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. its. one basic shirt? sound all cost per unit amounts to the ne (i) (Click the icon to view the additional information.) the Custom Design Department: For March 2024, the Little Rock Shirt Company compiled the following data for the Cutting and (Click the icon to view the Custom Design data.) Sewing Departments: (Click the icon to view the Cutting data.) (Click the icon to view the Sewing data.) Data table Requirement 1 Begin by comple other amounts t pasic shirt? ind all cost per unit amounts to the r For March 2024, the Little Rock Shirt Company compiled the following data for the Cutting and Sewing Departments: (Click the icon to view the Cutting data.) (Click the icon to view the Sewing data.) (Click the icon to view the Custom Design dat Read the requirements. Data table Requirement 1. Begin by comple other amounts to icon to view the Sewing data.) Data table The Little Rock Shirt Company has previously determined that creating and programming the design cost $90 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. 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 150% of the total cost, determine the total sales price of each job. 3. In addition to the custom jobs, the Little Rock Shirt Company sold 1,750 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 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 $800 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 Little Rock 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 Little Rock Shirt Company wants to earn an operating income of $2,000 per month. Compute the required sales in units and dollars to achieve this profit goal. 6. The Little Rock 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 $1.80 and the company desires a net profit of 50%, what is the target cost? The company estimates the full product cost of the cloth bags will be $1.10. Should the company manufacture the cloth bags? Why or why not? period, the Little Rock Shirt Company co Department: to view the Custom Design data.) ents. basic shirt? und all cost per unit amounts to th

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

10. What is meant by a feed rate?

Answered: 1 week ago

Question

Who holds the power in recruitment and selection?

Answered: 1 week ago

Question

Explain the effectiveness of various selection methods

Answered: 1 week ago

Question

Explain the nature of attraction in recruitment

Answered: 1 week ago