Chad Fronig operates Chad's Cricket Farm in Canton, Georgia. Chad's raises about 18 million crickets a Fronig does know that a unit of production is a box of 1,000 crickets. For example, in June's report, the 2,000 month. Most are sold to pet stores at $9.12 for a box of 1,000 crickets. Pet stores sell the crickets for $0.05 to physical units of beginning work in process inventory are 2,000 boxes (each one of those boxes contains $0.10 each as live feed for reptiles. Raising crickets requires a two-step process: incubation and brooding. In the first process, incubation, employees place cricket eggs on mounds of peat moss to hatch. In the second process, employees move the newly hatched crickets into large boxes filled with cardboard dividers. Depending on the desired size, the crickets spend approximately two weeks in brooding before being shipped to pet stores. In the brooding process, Chad's crickets consume about 16 tons of food and produce 12 tons of manure. (Click on the icon to view additional information.) 1,000 immature crickets). The finished goods inventory is zero because the crickets ship out as soon as they reach the required size. Monthly operating expenses total $10,200 (in addition to the costs that follow). (Click the icon to view the production cost report-Part 1.) (Click the icon to view the production cost report-Parts 2/3.) Read the requirements. Requirement 1. What is the cost per box of crickets sold? (Hint: This is the cost of the boxes completed and shipped out of brooding.) First, identify the labels to compute the average cost per box transferred out, then compute the average cost per box shipped out of brooding. (Enter your answer to the nearest cent.) Requirement 2. What is the gross profit per box? Average cost per box First, identify the labels to compute the gross profit per box, then compute the gross profit per box. (Enter all dollar amounts to the ne Gross profit Requirement 3. How much operating income did Chad's Cricket Farm make in June? per box More Info - Fronig has invested $400,000 in the cricket farm, and he had hoped to earn a 28.8% annual rate of return, which works out to a 2.4% monthly return on his investment. After looking at the farm's bank balance, Fronig fears he is not achieving this return. To get more accurate information on the farm's performance, Fronig bought new accounting software that provides weighted-average process cost information. After Fronig input the data, the software provided the following reports. However, Fronig needs help interpreting these reports. Print Done Requirement 3. How much operating income did Chad's Cricket Farm make in June? First, identify the labels to compute the operating income, then compute the operating income for June. Operating income Requirement 4. What is the return on Fronig's investment of $400,000 for the month of June? (Compute this as June's operating income divided by Fronig's investment, expressed as a percentage.) (Round the return on investment to the nearest hundredth of a percent, X.XX%.) The return on Fronig's investment of $400,000 for the month of June is %. Requirement 5. What monthly operating income would provide a 2.4% monthly rate of return? What price per box would Chad's Cricket Farm have had to charge in June to achieve this target monthly rate of return? First, identify the labels to compute the desired monthly operating income, then compute the amount. x Monthly operating income Requirement 5. What monthly operating income would provide a 2.4% monthly rate of return? What price per box would Chad's Cricket Farm have had to charge in June to achieve this target monthly rate of return? First, identify the labels to compute the desired monthly operating income, then compute the amount. x x Monthly operating income % = Identify the labels to compute the selling price per box needed to achieve a 2.4% monthly rate of return, then compute the amount. + + = Selling price per box = Step 2: Equivalent Units Direct Conversion in Materials Costs Chad's Cricket Farm-Brooding Department Month Ended June 30 Production Cost Report (part 1 of 3) Flow of Production Step 1: Flow of Physical Transferred- Units Units to account for: Beginning work in process, June 1 2,000 Plus: Transferred in during June 39,000 41,000 Total physical units to account for Units accounted for: Completed and shipped out during June 36,000 36,000 36,000 36,000 5,000 5,000 4,000 1,500 Plus: Ending work in process, June 30 41,000 Total physical units accounted for 41,000 40,000 Total equivalent units 37,500 Chad's Cricket Farm-Brooding Department Month Ended June 30 Production Cost Report (part 2 of 3) Beginning work in process, June 1 Plus: Costs added during June Total costs to account for Divided by: Total equivalent units Cost per equivalent unit Transferred- Direct Conversion in Materials Costs Total $ 13,000 $ 43,000 $ 9,375 $ 65,375 50,550 171,000 57,000 278,550 343,925 $ 63,550 $ 214,000 $ 66,375 41,000 40,000 37,500 $ 1.55 $ 5.35 $ 1.77 Chad's Cricket Farm-Brooding Department Month Ended June 30 Transferred- Production Cost Report (part 3 of 3) in Direct Materials Conversion Costs Total Assignment of total cost: Completed and transferred out: Equivalent units completed and transferred out 36,000 $ 1.55 $ 36,000 5.35 $ 36,000 1.77 Multiplied by: Cost per equivalent unit Completed and transferred out: Equivalent units completed and transferred out 36,000 36,000 36,000 $ 1.55 $ 5.35 $ 1.77 Multiplied by: Cost per equivalent unit Costs assigned to units completed and transferred out $ 55,800 $ 192,600 $ 63,720 $ 312,120 Ending work in process: Equivalent units in ending WIP 5,000 4,000 1,500 Multiplied by: Cost per equivalent unit $ 1.55 $ 5.35 $ 1.77 Costs assigned to units in ending WIP $ 7,750 $ 21,400 $ 31,805 2,655 $ 343,925 Total costs accounted for