Gretta's custom clothing business is really doing well! The company has orders from last month that...

   

Transcribed Image Text:

Gretta's custom clothing business is really doing well! The company has orders from last month that are incomplete, and additional new orders this month that she still has to complete. She is concerned that she's getting behind, which might damage her company's reputation of providing quality and style in a fast turnaround time. The following are the job cost sheets reflecting her work in January and so far in February. Direct material Direct labor MOH Job #8745 Date 1/30/25 2/2/25 1/31/25 2/3/25 1/31/25 2/3/25 Amount Selling Price $25.00 $40.00 $15.00 $45.00 $11.25 $33.75 Job status Completed Sold Direct material Direct labor MOH Job status Completed Sold 2/3/25 $170.00 2/4/25 $170.00 Job #4490 Amount 1/25/25 $50.00 2/3/25 $40.00 1/30/25 $125.00 2/4/25 $75.00 1/30/25 $93.75 2/4/25 $56.25 Date: 2/4/25 $440.00 2/5/25 $440.00 $275.00 Selling Price $600.00 Direct material Direct labor MOH Job status In process Job # 3772 Date 2/5/25 Amount $80.00 2/6/25 $40.00 2/6/25 $30.00 Selling Price (g2) Explain how she is most likely setting prices for these products, and what would need to be done differently if she wanted to use a steady markup percentage based on her costs. Gretta's custom clothing business is really doing well! The company has orders from last month that are incomplete, and additional new orders this month that she still has to complete. She is concerned that she's getting behind, which might damage her company's reputation of providing quality and style in a fast turnaround time. The following are the job cost sheets reflecting her work in January and so far in February. Direct material Direct labor MOH Job #8745 Date 1/30/25 2/2/25 1/31/25 2/3/25 1/31/25 2/3/25 Amount Selling Price $25.00 $40.00 $15.00 $45.00 $11.25 $33.75 Job status Completed Sold Direct material Direct labor MOH Job status Completed Sold 2/3/25 $170.00 2/4/25 $170.00 Job #4490 Amount 1/25/25 $50.00 2/3/25 $40.00 1/30/25 $125.00 2/4/25 $75.00 1/30/25 $93.75 2/4/25 $56.25 Date: 2/4/25 $440.00 2/5/25 $440.00 $275.00 Selling Price $600.00 Direct material Direct labor MOH Job status In process Job # 3772 Date 2/5/25 Amount $80.00 2/6/25 $40.00 2/6/25 $30.00 Selling Price (g2) Explain how she is most likely setting prices for these products, and what would need to be done differently if she wanted to use a steady markup percentage based on her costs.

Answer rating: 100% (QA)

Here are some suggestions for how Gretta can improve the turnaround time for her custom clothing business Identify the bottlenecks in her production p... View the full answer