Kizspy | Question: 21 (Choose 1 answer)
Lucy Sportswear manufactures a specialty line of T-shirts. The company uses a job-order costing system.During March, the following costs were incurred on Job ICU2: direct materials USD 13,700 and direct labor USD4,800. In addition, selling and shipping costs of USD7,000 were incurred on the job. Manufacturing overhead was applied at the rate of USD25 per machine-hour and Job ICU2 required 800 machine-hours. If Job ICU2 consisted of 7,000 shirts, the Cost of Goods Sold per shirt was:
A. USD6.50
B. USD6.00
C. USD5.70
D. USD5.50
