Reference no: EM13777842
Z Co manufactures two sizes of T-shirts, medium and large. Both sizes go through cutting, assembling and finishing departments. The company uses operation costing.
Z Co's conversion costs applied to products for the month of June were: Cutting Department $60,000, Assembling Department $60,000, and Finishing Department $30,000. June had no beginning or ending work-in-process inventory.
The quantities and direct materials costs for June follow:
Each T-shirt, regardless of size, required the same cutting, assembling and finishing operations.
(Job 601: Medium, Quantity- 10,000 Direct Materials, $50,000) ( Job 602 : Large Quantity- 20,000 Direct Materials $110,000)
(1) Compute both unit cost and total cost for each shirt size produced in June.
(2) Prepare journal entries to record direct materials and conversion costs incurred in the three departments, and the finished goods costs for both shirt sizes.
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