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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

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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.) E: (Click the icon to view the Sewing data.) More Info TULUI UM w uccounT TOT Units accounted for: Completed and transferred out 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. 950 950 n/a 950 550 550 n/a Ending work-in-process 440 1,500 1,500 n/a 1,390 Total units accounted for Transferred Direct Conversion Total 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, 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. COSTS In Materials Costs Costs Costs to account for: Beginning work-in-process $ 1,120 n/a $ 480 $ 1,600 Costs added during the period n/a 1,188 Total costs to account for n/a $ 1,668 Divided by: Total EUP n/a 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. n/a Cost per equivalent unit Choose from any list or enter any number in the input fields and then click Check Answer. Print Done :s Question Help Data Table x Requirements hpany compiled the following data for the Custom Design Department: Amount Units $ 1,600 400 shirts 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 ??? ??? 1,188 ??? 950 shirts Ja Table Ending balance, 80% complete ??? ??? x Data Table Cutting Department Amount Units 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 Beginning balance $ 0 O shirts Job Quantity Design Fee Printing Status Started in March 1,100 shirts 367 1.430 300 Yes Direct materials added in March 4 colors 350 368 Conversion costs 2 colors 1,650 No Complete Complete Complete Complete ??? 369 200 1,100 shirts Yes 3 colors Completed and transferred to Sewing Ending balance 0 370 400 Yes O shirts 5 colors Print Done 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. Print Done Print Done Check

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