The Richmond Shirt Company makes two types of T-shirts: basic and custom. 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.

Additional information: 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.

For March 2016, the Richmond Shirt Company compiled the following data for the Cutting and Sewing Departments:

Department	Item	Amount	Units
Cutting	Beginning balance	$0	0	shirts
	Started in March		1,400	shirts
	Direct materials added in March	4,060
	Conversion costs	1,540
	Completed and transferred to Sewing	???	1,400	shirts
	Ending balance	0	0	shirts
Sewing	Beginning balance, transferred in, $2,000;
	conversion costs, $500	2,500	500	shirts
	Transferred in from Cutting	???	???
	Conversion costs added in March	$1,235
	Completed and transferred to Finished Goods	???	1,350	shirts
	Ending balance, 70% complete	???	???

For the same time period, the Richmond Shirt Company compiled the following data for the Custom Design Department:

Job	Quantity	Design Fee	Printing		Status
367	200	Yes	5	colors	Complete
368	100	No	4	colors	Complete
369	400	Yes	2	colors	Complete
370	300	Yes	4	colors	Complete

The Richmond 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 $0.80 per color per shirt.

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 answer boxes. 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. Abbreviation used: EUP = equivalent units of production.)

Richmond Shirt Company Production Cost Report-Cutting Department Month Ended March 31, 2016 Equivalent Units Whole Transferred Direct Conversion UNITS Units Materials Costs In Units to account for: Total units to account for Units accounted for n/a n/a Total units accounted for n/a