1. First, consider BubbleX's glass bottle manufacturing plant being developed for bottling wine. And imagine the manufacturing process covering the product's life cycle. Then write a reflection on the risks or opportunity of investing on production resources. 2. Write a generalized reflection on manufacturing company's management of risk and opportunities related to their environmental, societal and governmental (ESG) landscape. 3. Using a weighted average approach to process costing, track the flow of the manufacturing costs and identify the equivalent units of bottles to be produced by calculating costs of finished bottles and costs that are lost bottles to spoilage (or breakage) for the months of January, February and March 20XX. 4. Write a reflection on the implications of the energy resources in total units produced and units lost to spoilage using environmental impact disclosure standard GRI 302-1. 5. Next, using a cost volume profit approach, calculate the operating income for each month should the company keep its current strategy. 6. Re-imagine the company with a new strategy aimed at reducing breakage. Write reflections on potential strategies the company can employ. 7. Bearing in mind that greater resource investment is aimed at increasing product quality to reduce breakage, account for January, February, and March with a 5 percent increase in direct materials and conversion costs for each month of original data*i. 8. Prepare a cost volume profit analysis for Year 1, Year 2 and Year 3. Keep fixed cost from January through March the same as original data and keep constant. 9. Visualize the data and perform an analysis. 10. Compare the performance of Years 1, 2 and 3 . a. Write a reflection on the cost volume profit implications. b. Write a reflection on the impact on energy resources using environmental impact disclosure standard GRI 302-1. 11. Consider whether BubbleX should implement the strategies analyzed in this case or not. Write your recommendations and the implications of your decision. i. When applying the 5% increase in investment, first consider that in original data costs are estimated at a ratio of 1.2 per unit for direct materials and 2.2 for conversion costs. Recreate original data to incorporate a 5% increase in investment such that the ratio will become 1.26 for direct materials and 2.31 for conversion costs. 2. Additionally, each preceding month's ending work in process inventory should be the next month's beginning inventory. 3. In conducting a weighted average process costing approach to accounting for spoilage, the original data should calculate good units as 70% of all units to account for. Recreate the accounting for spoilage with 5% intervention, the good units become 75% of units to account for. 4. Normal spoilage is 20% of units to account for. The 5% intervention implies that normal spoilage becomes 15% of units to account for. Original Data for Wein Company at Month 1 (January 20XX) Original Data for Wein Company at Month 2 (February 20XX) 1. First, consider BubbleX's glass bottle manufacturing plant being developed for bottling wine. And imagine the manufacturing process covering the product's life cycle. Then write a reflection on the risks or opportunity of investing on production resources. 2. Write a generalized reflection on manufacturing company's management of risk and opportunities related to their environmental, societal and governmental (ESG) landscape. 3. Using a weighted average approach to process costing, track the flow of the manufacturing costs and identify the equivalent units of bottles to be produced by calculating costs of finished bottles and costs that are lost bottles to spoilage (or breakage) for the months of January, February and March 20XX. 4. Write a reflection on the implications of the energy resources in total units produced and units lost to spoilage using environmental impact disclosure standard GRI 302-1. 5. Next, using a cost volume profit approach, calculate the operating income for each month should the company keep its current strategy. 6. Re-imagine the company with a new strategy aimed at reducing breakage. Write reflections on potential strategies the company can employ. 7. Bearing in mind that greater resource investment is aimed at increasing product quality to reduce breakage, account for January, February, and March with a 5 percent increase in direct materials and conversion costs for each month of original data*i. 8. Prepare a cost volume profit analysis for Year 1, Year 2 and Year 3. Keep fixed cost from January through March the same as original data and keep constant. 9. Visualize the data and perform an analysis. 10. Compare the performance of Years 1, 2 and 3 . a. Write a reflection on the cost volume profit implications. b. Write a reflection on the impact on energy resources using environmental impact disclosure standard GRI 302-1. 11. Consider whether BubbleX should implement the strategies analyzed in this case or not. Write your recommendations and the implications of your decision. i. When applying the 5% increase in investment, first consider that in original data costs are estimated at a ratio of 1.2 per unit for direct materials and 2.2 for conversion costs. Recreate original data to incorporate a 5% increase in investment such that the ratio will become 1.26 for direct materials and 2.31 for conversion costs. 2. Additionally, each preceding month's ending work in process inventory should be the next month's beginning inventory. 3. In conducting a weighted average process costing approach to accounting for spoilage, the original data should calculate good units as 70% of all units to account for. Recreate the accounting for spoilage with 5% intervention, the good units become 75% of units to account for. 4. Normal spoilage is 20% of units to account for. The 5% intervention implies that normal spoilage becomes 15% of units to account for. Original Data for Wein Company at Month 1 (January 20XX) Original Data for Wein Company at Month 2 (February 20XX)
