Lucy sportswear manufactures a specialty line to T-shirts. The company uses a job-costing system. During March, the following costs were incurred on Job ICU2: direct materials $13700 and direct labor $4800. In addition, selling and shipping costs of $7000 were incurred on the job. Manufacturing overhead was applied at a the rate of $25 per machine-hour and Job ICU2 required 800 machine hours. If job ICU2 consisted of 7000 shirts, the cost of goods sold per shirt was?

a) $6.50
b) $6.00
c) $5.70
d) $5.50

What is the correct answer?

We don't do homework. Good Luck !

I came up with (a) $6.50

[($13,700 + 4800 + 7000 + (800 x 25))/7000]

Good Luck!