Comprehensive Problem for Chapters 18- 21
The Jacksonville 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.
The company buys cloth in various colors and then makes the basic shirts in two departments, Cutting and Sewing. The company uses 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
For March 2018, the Jacksonville 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 | 1,200 shirts | ||
Direct materials added in March | 1,920 | ||
Conversion costs | 1,320 | ||
Completed and transferred to Sewing | ??? | 1,200 shirts | |
Ending balance | 0 | 0 shirts |
Sewing Beginning balance, transferred in, $ 1,350
conversion costs, $650 | $2,000 | 500 shirts |
Transferred in from Cutting | ??? | ??? |
Conversion costs added in March | 1,196 | |
Completed and transferred to Finished Goods | ??? | 1,000 shirts |
Ending balance, 60% complete | ??? | ??? |
For the same time period, the Jacksonville Shirt Company compiled the following data for the Custom Design Department
Job | Quantity | Design Fee | Printing | Status |
367 | 400 | Yes | 3 colors | Complete |
368 | 150 | No | 2 colors | Complete |
369 | 100 | Yes | 5 colors | Complete |
370 | 500 | Yes | 4 colors | Complete |
The Jacksonville Shirt Company has previously determined that creating and programming the design cost $80 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 $0.20 per color per shirt.
Requirements
3. In addition to the custom jobs, the Jacksonville Shirt Company sold 1,000 basic shirts (assume the beginning balance in Fin shed 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.
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Horngren's Accounting, Student Value Edition (12th Edition)
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