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Durable Wear manufactures two sizes of polo shirts, medium and large

Accounting

Durable Wear manufactures two sizes of polo shirts, medium and large. Both sizes go through cutting, assembling and finishing departments. The company uses operation costing. Durable Wear's conversion costs applied to products for the month of October were: Cutting Department $60,000, Assembly Department $60,000, and Finishing Department $30,000. October had no beginning or ending work-in-process inventory. The quantities and direct materials costs for October follow:

Direct 

Job Number. Size Quantity Materials

601 Medium 10,000 $50,000

602 Large 20,000 $110,000

Each shirt, regardless of size, required the same cutting, assembly and finishing operations. 

Required:

Complete both unit cost and total cost for each shirt size produced in October by using Excel formulas to support your answers' calculations.

  Medium  Large

Job 601 

Job 602 

Conversion: Cutting  

Conversion: Assembly 

 Conversion: Finishing 

 Total cost per unit  

Medium shirt

total cost 

Large shirt

total cost 

Total Product Cost 

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