Sewing Department Data Sewing Department Amount Units Beginning balance, transferred in, $810; $ 1,200 300 shirts conversion costs, $390 Transferred in from Cutting ??? ??? Conversion costs added in March 1,716 Completed and transferred to Finished Goods ??? 1,300 shirts Ending balance, 80% complete ??? ??? Print Done Requirements uns monary. In the company set me sales price at 12970 DI ME CUST, 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 Raleigh 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 Raleigh Shirt Company wants to earn an operating income of $1,000 per month. Compute the required sales in units and dollars to achieve this profit goal. 6. The Raleigh 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 $0.70. Should the company manufacture the cloth bags? Why or why not? Print Done - 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 Raleigh Shirt Company sold 1,300 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 Raleigh 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. Print Done - Custom Design Department Data Job Quantity Design Fee Printing 367 300 Yes 3 colors Status Complete 368 100 No 4 colors Complete 369 200 Yes 5 colors Complete 370 400 Yes 2 colors Complete The Raleigh 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 50.30 per color per shirt. Print Done - Cutting Department Data Cutting Department Beginning balance Amount Units $ 0 0 shirts Started in March 1,400 shirts Direct materials added in March Conversion costs 2,240 1,540 Completed and transferred to Sewing ??? 1,400 shirts Ending balance 0 0 shirts Print Done - Additional Information 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. Print Done - X The Raleigh Shirt Company makes two types of T-shirts: basic and custom. View the additional information. For March 2025, the Raleigh Shirt Company compiled the following data for the Cutting and Sewing Departments: View the Cutting Department data. View the Sewing Department data. For the same time period, the Raleigh Shirt Company compiled the following data for the Custom Design Department: View the Custom Design Department data. Read the requirements Month Ended March 31, 2025 Equivalent Units Whole Transferred UNITS Units In Direct Materials Conversion Costs Units to account for: Total units to account for Units accounted for: n/a n/a n/a Total units accounted for