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