Accounting 311 Manufacturing Worksheet - Chunky Milk Assumptions: Raw milk costs $2/gallon one batch = 100 gallons Chunking one batch of milk requires 5 hours of direct labor Milk chunkers are paid $15/hour FOH is applied at a rate of 120% of direct labor dollars Direct labor is added at the beginning of the conversion process FOH is appled at the end of the conversion process We sell our chunky milk for $5/gallon Cost per raw material batch Cost per WIP Batch Cost per finished batch Dolar Amount Price Group Dolar Amount Price Group Dolar Amount Price Group Raw Materials Raw Materials Raw Materials Direct Labor Direct Labor Direct Labor Factory overhead (FOH) Factory overhead ( FOH ) Factory overhead (FOH) Total Cost per raw material batch Total Cost per WIP batch Total Cost per finished batch Totals ce Group Dolar Amount Sales price per gallon Cost per gallon Gross Profit per gallon Gross Profit % per gallon