Comprehensive Problem Chapters 16-20 The Tattered Threads Shirt Compary makes two types of T-shirts: basic and curtom. Basic shirts are plain shirts without any screen peinting on them. Custom shirts are created uning the basic shirts and then adding a custom screen-printing design. The company burys cloth in various colors and theh makes the basic shirts in two departments, Cutting and Sewing. The compary uses a process costing system (weighted-average method) to determine the production cost of the basic shirts, In the Cutting Department, direct materlals (cloth) are added at the beginning of the process and corversion costs are added evenly through the process. In the Sewing Department, no direct materlals are added. The only additional material, thread, is considered an ind rect material because it cannot be easliy traced to the finished product. Comersion costs are added evenly throughout the process in the Sewing Department. The finished basic shirts are sold to retall stores or are sent to the Custon Design Department for custom screen printing. The Custom Design Department creates custorn shirts by adding screen printing to the basic shirt. The department creates a design based on the customer's request and then pelnts the design using up to four colors. Because these shirts have the custom printing added, which is unique for each order, the add tional cost incuered is determined usine Job order costing, with each custom order consldered a separate job. For March 2021 the Tattered Threads Shirt Company compled the following data for the Cutting and Sewing Departments: For the same time period, the Tattered Threads Shirt Company compled the following data for the Custom Design Department Job The Tattered Threads Shirt Compary has previously determined that creating and programming the design cost 84 per design This is a one vine charee If a customer places another order with the same desizn, the curtomer is not charged ascond tome Additionally, the cost to print is per color per shirt The Tattered Threads Shirt Company Production Cost Report- Sewing Dept Month Ended March Cost of one basic shirt = C3. In addition to the custom Jobs, the Tattered Threads Shirt Company sold 1250 basic shirts, If the company set the sales price at 140% 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. " (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 Inventorv is the same as the unit cost incurred this month) CA. Calculate the total revenue, total cost of goods sold, and total gross profit for all sales, basic and custom. CS. Assume the compary sold only basic shirts (no custom designs) and incurred fixed costs of $790 per month. a. Cakulate the contribution margin per unit, contribution margin ratio, required sales in units to break even, and required sales in dollars to break even. CMRationReqsalesin$* b. Determine the margin of safety in units and dollars. Margin of safety in units 830 shirts Marein of safetyins. 8.37 C. Suppose the Tartered Threads stint Company wants to earn an operatine incame of $1240 per month Compace the required sales in units and dollars to achicve this profit goal. Req wales ia units- 43700 Meq sales lins - 3,65600 Comprehensive Problem Chapters 16-20 The Tattered Threads Shirt Compary makes two types of T-shirts: basic and curtom. Basic shirts are plain shirts without any screen peinting on them. Custom shirts are created uning the basic shirts and then adding a custom screen-printing design. The company burys cloth in various colors and theh makes the basic shirts in two departments, Cutting and Sewing. The compary uses a process costing system (weighted-average method) to determine the production cost of the basic shirts, In the Cutting Department, direct materlals (cloth) are added at the beginning of the process and corversion costs are added evenly through the process. In the Sewing Department, no direct materlals are added. The only additional material, thread, is considered an ind rect material because it cannot be easliy traced to the finished product. Comersion costs are added evenly throughout the process in the Sewing Department. The finished basic shirts are sold to retall stores or are sent to the Custon Design Department for custom screen printing. The Custom Design Department creates custorn shirts by adding screen printing to the basic shirt. The department creates a design based on the customer's request and then pelnts the design using up to four colors. Because these shirts have the custom printing added, which is unique for each order, the add tional cost incuered is determined usine Job order costing, with each custom order consldered a separate job. For March 2021 the Tattered Threads Shirt Company compled the following data for the Cutting and Sewing Departments: For the same time period, the Tattered Threads Shirt Company compled the following data for the Custom Design Department Job The Tattered Threads Shirt Compary has previously determined that creating and programming the design cost 84 per design This is a one vine charee If a customer places another order with the same desizn, the curtomer is not charged ascond tome Additionally, the cost to print is per color per shirt The Tattered Threads Shirt Company Production Cost Report- Sewing Dept Month Ended March Cost of one basic shirt = C3. In addition to the custom Jobs, the Tattered Threads Shirt Company sold 1250 basic shirts, If the company set the sales price at 140% 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. " (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 Inventorv is the same as the unit cost incurred this month) CA. Calculate the total revenue, total cost of goods sold, and total gross profit for all sales, basic and custom. CS. Assume the compary sold only basic shirts (no custom designs) and incurred fixed costs of $790 per month. a. Cakulate the contribution margin per unit, contribution margin ratio, required sales in units to break even, and required sales in dollars to break even. CMRationReqsalesin$* b. Determine the margin of safety in units and dollars. Margin of safety in units 830 shirts Marein of safetyins. 8.37 C. Suppose the Tartered Threads stint Company wants to earn an operatine incame of $1240 per month Compace the required sales in units and dollars to achicve this profit goal. Req wales ia units- 43700 Meq sales lins - 3,65600