HELPPPPP!!!! In addition to the custom jobs, the Savannah Shirt Company sold 1,2

ID: 2462580 • Letter: H

Question

HELPPPPP!!!! In addition to the custom jobs, the Savannah Shirt Company sold 1,250 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 140% of the cost, determine the sales price per unit, total sales revenue, and the total cost of goods sold for the basic shirts. Production cost report for both departments and Custom jobs is below

Explanation / Answer

Determine the sales price per unit, total sales revenue, and the total cost of goods sold for the basic shirts:

Job

Quantity

Total cost
for the basic shirts

Total
Sales
revenue

Selling price
per unit

367

$ 195

$ 273

$ 4.55

368

260

$ 260

$ 364

$ 1.40

369

160

$ 315

$ 441

$ 2.76

370

110

$ 185

$ 259

$ 2.35