Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me with requirements 3 and 4. and the ending of requirement 2 where it says Sales price per shirt. The New Orleans Shirt

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedPlease help me with requirements 3 and 4. and the ending of requirement 2 where it says Sales price per shirt.

The New Orleans Shirt Company makes two types of T-shirts: basic and custom (Click the icon to view the additional information.) For the same time period, the New Orleans Shirt Company compiled the following data for the Custom Design Department (Click the icon to view the Custom Design data.) Read the requirements For March 2018, the New Orleans 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.) Requirement 1. Complete a production cost report for the Cutting Department and the Sewing Department. What is the cost of one basic shirt? Begin by completing a production report for the Cutting Department. (Complete all input fields. Enter a "0" for any zero balances equivalent units of production.) Data Table x bbreviation used: EUP New Orleans Shirt Company Production Cost Report-Cutting Department Month Ended March 31, 2018 Equivalent Units Cutting Department Amount Units Beginning balance $ 0 O shirts Whole Started in March 1,100 shirts Transferred Direct Conversion Units Direct materials added in March UNITS 1,430 In Materials Costs Conversion costs 1,650 ??? 1,100 shirts Units to account for: Beginning work-in-process Started in production 0 Completed and transferred to Sewing Ending balance 1.100 0 O shirts 1.100 Total units to account for Print Done Units accounted for: Completed and transferred out Ending work-in-process 1,100 n/a 1,100 1,100 0 n/a 0 0 1,100 n/a Total units accounted for 1,100 1,100 Transferred Direct Conversion Total Costs In Materials Costs n/a $ 0 $ COSTS Costs to account for: Beginning work-in-process Costs added during the period Total costs to account for Divided by: Total EUP 0 $ 1,430 0 3,080 n/a 1,650 n/a $ 3,080 1,430 $ 1,100 1,650 $ 1,100 n/a n/a $ 1.30 $ 1.50 Cost per equivalent unit Costs accounted for: Completed and transferred out nla $ 1.430 $ 1.650 $ 3.080 Transferred Conversion Direct Materials Total Costs In Costs $ 0 $ 0 $ 0 COSTS Costs to account for: Beginning work-in-process Costs added during the period Total costs to account for Divided by: Total EUP n/a n/a 1,430 1,650 3,080 $ 3,080 n/a n/a 1,430 $ 1,100 1,650 $ 1,100 n/a $ 1.30 $ 1.50 Cost per equivalent unit Costs accounted for: Completed and transferred out Ending work-in-process $ 1,430 $ 1,650 $ 3,080 n/a n/a 0 0 0 n/a $ 1,430 $ 1,650 $ 3,080 Total costs accounted for Now complete a production report for the Sewing Department. (Complete all input fields. Enter a "0" for any zero balances. Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar.) Data Table New Orleans Shirt Company Production Cost Report-Sewing Department Month Ended March 31, 2018 Equivalent Units Whole Transferred Direct Conversion Amount Units UNITS Units In Materials Costs $ 1,600 400 shirts ??? ??? Units to account for: Beginning work-in-process 400 Sewing Department Beginning balance, transferred in, $1,120; conversion costs, $480 Transferred in from Cutting Conversion costs added in March Completed and transferred to Finished Goods Ending balance, 80% complete 1,188 Transferred in 1,100 ??? 950 shirts 1,500 Total units to account for ??? ??? Units accounted for Print Done Completed and transferred out 950 950 n/a 950 Enter any number in the edit fields and then click Check Answer. Units accounted for: Completed and transferred out Ending work-in-process 950 950 550 n/a n/a 950 440 550 1,500 1,500 n/a 1,390 Total units accounted for Transferred Conversion Total Direct Materials In Costs Costs $ n/a $ 480 $ COSTS Costs to account for: Beginning work-in-process Costs added during the period Total costs to account for Divided by: Total EUP 1,120 3,080 1,600 4,268 n/a 1,188 $ $ 5,868 4,200 1,500 n/a n/a 1,668 $ 1,390 $ $ 2.80 n/a $ 1.20 $ 4.00 Cost per equivalent unit Costs accounted for: Completed and transferred out $ 2.660 n/a $ 1.140 $ 3.800 Completed and transferred out $ 2,660 n/a $ 1,140 $ 528 3,800 2,068 Ending work-in-process 1,540 n/a $ 4,200 n/a $ 1.668 $ 5.868 Total costs accounted for Requirement 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. Begin by determining the total cost of each order (job). In the steps that follow, calculate the average cost per shirt, the sales price per shirt, and the total sales revenue from each order. (When entering amounts into the table below, round all total cost amounts to the nearest whole dollar and all per unit (shirt) amounts to the nearest cent. Complete all input fields. Enter a "0" for any zero balance Job (Custom Shirts) 367 Data Table 368 369 370 Total Total cost of basic shirts 1,200 $ 1,400 $ 800 $ 1,600 60 0 60 60 Job Design costs Printing costs Quantity Design Fee Printing Status 1,080 630 540 1,800 367 300 Yes 4 colors Total cost of the order $ 2,340 $ 2,030 $ 1,400 $ 3,460 $ 9,230 368 350 No 2 colors Average cost per shirt Complete Complete Complete Complete $ 7.80 $ 5.80 $ 7.00 $ 8.65 369 200 Yes 3 colors Sales price per shirt 370 400 Yes 5 colors Enter any number in the edit fields and then click Check Answer. The New Orleans Shirt Company has previously determined that creating and programming the design cost $60 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 $0.90 per color per shirt. 16 parts remaining Clear A Check Answer Requirements - the Custom Design C The New Orleans Shirt Company makes two types of T-shirts: basic and custom. (Click the icon to view the additional information.) xhts: More Info For March 2018, the N E: (Click the icon to E: (Click the icon to Completed and tr 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. Ending work-in-pl Total costs accounted Requirement 2. Dete any set the Begin by determining to the nearest whole 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 e below, round all tota he sales pil or any zerd 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 New Orleans Shirt Company sold 950 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 $600 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 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 $1.000 per month. Compute the required sales in units and Job (Custom Shirts) Total Total cost of basic shi Design costs Printing costs Total cost of the order 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. Average cost per shin Sales price per shirt Print Done Enter any number in Print Done

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: 3

blur-text-image

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

The Law And Economics Of Patent Damages, Antitrust, And Legal Process

Authors: James Langenfeld, Frank Fagan, Samuel Clark

2nd Edition

1800710259, 9781800710252

More Books

Students also viewed these Accounting questions

Question

Explain how SIHRM is linked to different global business strategies

Answered: 1 week ago