Leikam Company produces dress slacks in three departments: Cutting, Sewing, and Packaging. During the month, the three departments recorded the following costs:
|
Cutting Department
|
Sewing Department
|
Packaging Department
|
|
Direct materials
|
$5,400
|
$ 900
|
$225
|
|
Direct labor
|
150
|
1,800
|
900
|
|
Applied overhead
|
750
|
3,600
|
900
|
Six hundred pairs of slacks were completed during the month. There is no beginning or ending work in process in any department.
Required
1. Prepare a schedule showing, for each department, the cost of direct materials, direct labor, applied overhead, products transferred in from a prior department, and total manufacturing cost.
2. (a) Calculate the cost transferred from Cutting to Sewing.
(b) Calculate the cost transferred from Sewing to Packaging.
(c) Calculate the cost transferred from Packaging to Finished Goods.
3. What is the total unit cost of a pair of slacks?