Given the following Info for a local brewery named "Uptown Brewery":

Cash Receipts
1944 half-kegs (972 barrels sold at $50 each)	$	48,600
Cash Disbursements
Malted-Barley extract (2,000 lbs. @ $2.10/lb)	$	4,200
Wheat extract (1,000 lbs. @ $2.75/lb)		2,750
Hops (240 bushels at $10/bushel)		2,400
Brewer’s Yeast (50 bricks at $2.80/brick)		140
Water (116,667 @ $.0009/gal)		105
Half Kegs (200 @ $15)		3,000
Keg washing machine		12,000
Payroll (including taxes and benefits):
1 Manager		8,000
1 Worker (520 hours)		5,200
Gas and Electricity (25% Gas)		160
Rent		3,000
Excise taxes ($10 per barrel sold)		9,720
Miscellaneous manufacturing costs		130
Miscellaneous general & administrative expenses		2,285
Loan payments:
Principal		0
Interest		3,600
Total cash disbursements		56,690
Beginning Inventories
Barley extract (500 lbs)	$	1,050
Wheat extract (100 lbs)		275
Hops (4 bushels)		40
Yeast (5 bricks)		14

There was no work in process or finished goods on hand at the end of the last quarter. At the very beginning of this quarter, The Manager had purchased an additional 200 half-kegs, making a total of 1000 half-kegs to hold the product. Also purchased was a $12,000 machine to wash and sterilize the kegs. All equipment, including the half-kegs and the keg washing machine was depreciated on a straight line basis over 10 years with no salvage value.

The $12,000, one-year insurance policy that Uptown had prepaid remained in effect during the quarter. Ninety percent of the manager's time was still devoted directly to brewing ale, and the remainder was spent dealing with general and administrative duties.

You toured the warehouse and learned more about the brewing process, and about the stage that the product was in at the end of the quarter. To keep things straight in your mind, you made a chart of the entire process.

Dept.:	Boiling Department	Fermenting Department			Shipping Department
Stage:	Stage 1	Stage 2	Stage 3	Stage 4	Stage 5
Activities:	- Add extract, Hops, water	- Add Yeast	- Ferment with Elec.		- Ship
	- Remove Hops	- Remove Yeast			- Clean and Refill Kegs
	- Boil with gas	- Cool with Elec.		- Cool with Elec.
Hrs. Spent:	(8 hrs.)	(16 hrs.)	(3 days)	(4 days)	(0 days)
Elec. Spent:	(0% elec.)	(15% elec.)	(50% elec.)	(25% elec.)	(10% elec.)

The manager estimated that about 30% of all labor was required for the Boiling operation, 60% for the Fermenting operation, and 10% for cleaning and refilling the half-kegs. All overhead items should be allocated based on direct labor cost. You noted that other than the keg washing machine, no additions had been made to the $130,000 worth of brewing equipment. At the end of the quarter you did an inventory, and found that the manager had one batch (12 barrels) that had just completed boiling and needed to have the hops strained out (virtually complete in the Boiling operation), and one batch in the middle of the Fermenting operation (the yeast had already been added). The recipe for each 12 barrel batch of Froth calls for 20 pounds of barley extract, ten pounds of wheat extract, one brick of yeast (each of which can be used in four batches), two bushels of hops, and 372 gallons of water. 96 half kegs (48 barrels) that had just been filled and stabilized were in the refrigerator ready to be sold.

Required:

1. Using three processes of Boiling, Fermenting, and Shipping, what journal entries should be made to record this period’s activities?

2. What is Uptown's income statement for the period?

3. What is Brewery's cost per barrel?

4. What is the value of the inventory?