1 Accounting 311 2 Manufacturing Worksheet - Chunky Milk 3 Assumptions: 4 Raw milk costs $2/gallon 5 one batch = 100 gallons 6 Chunking one batch of milk requires 5 hours of direct labor 7 Milk chunkers are paid $15/hour 8 FOH is applied at a rate of 120% of direct labor dollars 9 Direct labor is added at the beginning of the conversion process 10 FOH is appled at the end of the conversion process 11 We sell our chunky milk for $5/gallon 12 Cost per raw material batch 13 Price Group 14 Raw Materials 15 Direct Labor 16 Factory overhead (FOH) 17 Total Cost per raw material batch 18 19 Totals 20 Price Group 21 Sales price per gallon 22 Cost per gallon 23 Gross Profit per gallon 24 Gross Profit % per gallon Dolar Amount Cost per WIP Batch Price Group Dolar Amount Cost per finished batch Price Group Dolar Amount Dolar Amount Raw Materials Direct Labor Raw Materials Direct Labor Factory overhead (FOH) Factory overhead (FOH) Total Cost per WIP batch Total Cost per finished batch