Check my work mode: This shows what is correct or la rom the bits of flotsam in C.D's orange crate you were able to learn the following: $48,600 $ 4,200 2,750 2,400 140 105 3,000 12,000 Cash Receipts 1944 half-kegs (972 barrels sold at $50 each) Cash Disbursements Malted-Barley extract (2,900 pounds @ $2.10/pound) Wheat extract (1,080 pounds @ $2.75/pound) Hops (240 bushels at $19/bushel) Brewer's Yeast (50 bricks at $2.80/brick) Water (116,667 @ $.0009/gallon) Half kegs (200 @ $15) Keg washing machine Payroll (including taxes and benefits): C.D. cervesa Direct labor costs Gas and Electricity (25% Gas) Factory Rent Excise taxes ($10 per barrel sold) Miscellaneous manufacturing costs Miscellaneous general & administrative expenses Loant payments: Principal Interest Total cash disbursements Beginning Inventories Bariey extract (598 pounds) wheat extract (100 pounds) Hops (4 bushels) Yeast 13 boicke) 899 12,400 169 3.ee 9,720 13e 2,285 e 3.699 56.699 $ 1.050 275 11 Downstream Brewery had fulfilled its contracts with Lowerbrow and Olde Melrish at the end process or finished goods on hand at the end of the last quarter. At the very beginning of t additiona 200 half-kegs, making a total of 1000 ha f-kegs to hold the Froth production. Sinc cleaning and returning the empty haf-kegs. C.D. a so purchased a $12,000 machine to was including the half-kegs and the keg washing machine was depreciated on a straight line pas The $12.000, one-year insurance policy that Downstream had orepaid remained in effect du time was stil devoted directly to brewing are, and the remainder was spent dealing with gen You toured the warehouse and learned more about the brewing process, and about the stag the cuarte To keep things straight your mind, you made a chat of the entire process m, EX G G a T to.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FbE Saved Check my work mod nows what is correct or incorrect for the work you have completed so fa Beginning Inventories Barley extract (508 pounds) Wheat extract (100 pounds) Hops (4 bushels) Yeast (5 bricks) $ 1,050 275 48 14 Downstream Brewery had fulfilled its contracts with Lowerbrow and Olde Mclrish at the end of last quarter. 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, C.D. Cervesa had purchased an additional 200 half-kegs, making a total of 1000 half-kegs to hold the Froth production. Since Olde McIrish would no longer be cleaning and returning the empty half-kegs, C.D. also purchased 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 Downstream had prepaid remained in effect during the quarter. Ninety percent of C.D.'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 C.D.'s product was in at the end of the quarter. To keep things straight in your mind, you made a chart of the entire process. Boiling Department Add extract Remove hops water hops boil with 33 s= ) Shipping Departme Fermenting Department Remove yeast Add yeast Ship cool with electricity 16 hours (15% electricity) ferment with electricity 6 days) (50% electricity) cool with electricity (4 days) 25% electricity) clean kegs and refill 10% electricity C.D. estimated that about 30% of all labor was required the Boiling operation, 60% for the Fermenting operation, and 10% for cleaning and refilling the nat-kegs. You discussed the ins and outs of overhead allocation and decided that all overhead items should be allocated based on direct abor cost. You noted that other than the keg washing machine, no additions had been made to the $130,000 worth of brewing equioment you remembered from your previous engagement with Downstream. At the end of the quarter you did an inventory, and found that C.D. had one baten (12 barre S) 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 nad 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 busnels of hops, and 372 gallons of water. Ninety-six half kegs (48 barrels that had just been filed and stabilized were in the refrigerator ready to be taken to the friend's pub where it would be sold Required: in answering the following questions, give C.D. suficient details so that you can retire from this job in the near future and co can continue without you lina mares norecces ni Reitinn Fermentine and Shinninn What inuirnal entries should be made to narrel this period's artistes Prev e to search HH Required 1 Required 2. Required 3 Required 4 What is Downstream's income statement for the period? (Round "Per Barrel" answers t decimal places.) Downstream Brewery: Process Costing Income Statement Total Per Barrel S 50 000 $ 48.600.000 Gross sales 9.720.00 10.000 ess: Excise tax 38.880.00 40.000 Net sales Cost of goods sold 38.880.00 40.000 Gross profits on sales 800.00 Se ng general and administrative expenses Administrative salary C.D. Cervesa General selling and administrative expenses 2.285.00 3.800.00 interest expense 8.885.00 Total selling general, and administrative expenses Operating profit S 32. 195.00