Question

II. Record the following transactions in the Journal and post them to the ledger. Gillian's gown's received an order for a silk gown from Malie Mills on June 1st June 1st: Factory requisitions 10 yards of silk from the factory. The silk costs $100 per yard Between June 1st and June 5th, the factory works on the gown: 20 hours of direct labor is charged at $40 per hour Manufacturing overhead is allocated to jobs based on direct labor hours. The predetermined overhead rate is $25 per hour. June 6th: The gown is finished and sent to the showroom. June 7th: The gown is delivered to Malie Mills. Malie Mills is billed $10,000 II. Write a one to two-page critical analysis on the following case, Bringing Manufacturing Back to the U.S. Easier Said than Done

Answer 1

DATE DATE Solution The gown We shall assume that the Gillian's gown that received cun ordel wooked the Gown with 1 labour itill: Ale, during the Bohous that put by the labour on the grown there been . wastage and there were Idle hours involved was sold for $10,000 ie the profit made was $ 7,400 approximately were have zelo no Cost such as we as However, there might have been other additional expenses that would have been involved in bringing the gown from the place of manufacture to the point of sale other selling of distribution overheads and tired . Electricity, Rent etc. However, have assumed that there have been no such costs sinu the question is silent. so the Lost sheet can be presented follows: I Direct Cost Prime Cost (+) Direct Material Clox $100 $1000 Direct Labour (20x $40/hr) $800 (+) Direct overheads $1,800 +) Manufacturing presbeads (20x$25) $ I INDIRECT $2,300 (o the overheads cost of Production cost of Goods sold $2,300 delling' Distribution bapenses sales $2,300 DIRECT COST 500 OST