Caden Topper operates Caden's Cricket Farm in Clarkston, Georgia. Caden's raises about 18 million crickets a month. Most are sold to pet stores at $7.30 for a box of 1,000 crickets. Pet stores sell the crickets for $0.05 to $0.10 each as live feed for reptiles. 1 (Click on the icon to view additional information.) Requirements Caden Topper has the following questions about the farm's performance during June: 1. What is the cost per box of crickets sold? (Hint: This is the cost of the boxes completed and shipped out of brooding.) 2. What is the gross profit per box? 3. How much operating income did Caden's Cricket Farm make in June? 4. What is the return on Topper's investment of $400,000 for the month of June? (Compute this as June's operating income divided by Topper's investment, expressed as a percentage.) 5. What monthly operating income would provide a 4.1% monthly rate of return? What price per box would Caden's Cricket Farm have had to charge in June to achieve this target monthly rate of return? Print Done Data table A B D E 1 Caden's Cricket Farm-Brooding Department Step 1: Step 2: Equivalent Units Month Ended June 30 Flow of Physical Transferred- Direct Conversion 2 Production Cost Report (part 1 of 3) Units in Materials Costs 3 Flow of Production 4 Units to account for: Beginning work in process, June 1 5,000 6 Plus: Transferred in during June 49,000 7 Total physical units to account for 54,000 8 Units accounted for: 9 Completed and shipped out during June 46,000 46,000 46,000| 46,000 Plus: Ending work in process, June 30 8,000 8,000 6,000 2,400 Total physical units accounted for 54,000 12 Total equivalent units 54,000 52,000 48,400 10 11 LC Data table A B E Caden's Cricket Farm-Brooding Department Month Ended June 30 Transferred- Direct Conversion 2 Production Cost Report (part 2 of 3) in Materials Costs Total 3 Beginning work in process, June 1 4 Plus: Costs added during June $ 15,500 S 53,000 $ 6,500 $ 75,000 50,920 181,000 54,000 285,920 66,420 $ 234,000 S 60,500 $ 360,920 Total costs to account for 6 Divided by: Total equivalent units 54,000 52,000 48,400 7 Cost per equivalent unit $ 1.23 $ 4.50 S 1.25 A B D E 1 Caden's Cricket Farm-Brooding Department Month Ended June 30 Transferred- Direct Conversion 2 Production Cost Report (part 3 of 3) in Materials Costs Total 3 Assignment of total cost: 4 Completed and transferred out: 5 Equivalent units completed and transferred out 46,000 46,000 46,000 6. Multiplied by: Cost per equivalent unit $ 1.23 $ 4.50 $ 1.25 7 Costs assigned to units completed and transferred out $ 56,580 S 207,000 $ 57,500 $ 321,080 %24 %24 %24 %24 Data table 4 Plus: Costs added during June 50,920 181,000 54,000 285,920 5 Total costs to account for 66,420 S 234,000 S 60,500 $ 360,920 6 Divided by: Total equivalent units 7 Cost per equivalent unit 54,000 52,000 48,400 $ 1.23 $ 4.50 $ 1.25 A E Caden's Cricket Farm-Brooding Department Month Ended June 30 Transferred- Direct Conversion 2 Production Cost Report (part 3 of 3) in Materials Costs Total 3 Assignment of total cost: 4 Completed and transferred out: 5 Equivalent units completed and transferred out 46,000 46,000 46,000 6 Multiplied by: Cost per equivalent unit 1.23 S 4.50 $ 1.25 7 Costs assigned to units completed and transferred out 56,580 S 207,000 $ 57,500 S 321,080 8 Ending work in process: 9 Equivalent units in ending WIP 8,000 6,000 2,400 10 Multiplied by: Cost per equivalent unit $ 1.23 S 4.50 $ 1.25 11 Costs assigned to units in ending WIP 9,840 S 27,000 $ 3,000 39,840 12 Total costs accounted for $ 360,920 B. %24 %24 %24 %24 %24 %24