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    Minivan's Avatar
    Minivan Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 26, 2007, 04:39 PM
    How to figure the cost of goods sold per shirt
    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?
    wags's Avatar
    wags Posts: 80, Reputation: 4
    Junior Member
    		  
    #2

    Jul 26, 2007, 09:55 PM
    We don't do homework. Good Luck !
    Mathandler1's Avatar
    Mathandler1 Posts: 87, Reputation: 2
    Junior Member
    		  
    #3

    Jul 27, 2007, 10:50 AM
    I came up with (a) $6.50

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

    Good Luck!
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