Check my work mode: This shows what is correct ou From 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, e9e Cash Receipts 1944 half-kegs (972 barrels sold at $50 each) Cash Disbursements Malted-Barley extract (2,080 pounds @ $2.10/pound) Wheat extract (1,980 pounds @ $2.75/pound) Hops (240 bushels at $10/bushel) Brewer's Yeast (50 bricks at $2.80/brick) water (116,667 @ $.2009/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 Loan payments: Principal Interest Total cash disbursements Beginning Inventories Ganley extract (502 pounds) Wheat extract (100 pounds) Hops (4 bushels) Yeast (5 bricks) 809 12,400 160 3.000 9,720 130 2,285 @ 3.600 56,699 1,850 21/5 Downstream Brewery had fulfilled its contracts with lowerbrow and Olde Mclrish at the e process or finished goods on hand at the end of the last quarter. At the very beginning of additiona 200 half-kegs, making a total of 1000 ha f-kegs to hold the Froth production. Si cleaning and returning the empty half kegs. C.D. a so purchased a $12,000 machine to wa including the ha f-kegs and the keg washing machine was depreciated on a straight line o The $12.000, one-year insurance policy that Downstream had prepaid remained in effects time was stil devoted a rectly to brewing a e, and the remainder was spent dealing with ge You toured the warehouse and earned more about the brewing process, and about the sta the quarter to keep things straight your mind, you made a cha of the entire process here to search DI Downstream Brewery had fulfilled its contracts with Lowerbrow and Olde McIrish 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 a additional 200 half-kegs, making a total of 1000 half-kegs to hold the Froth production. Since Olde Mclrish 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 a 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. Fermenting Department, Remover yease Shipping Depa Boiling Department Add extract Remove hops, water hops boil with gas (8 hours) Add yeast Ship cool with electricity (16 hours) (15% electricity) fennent with electricity 3 days electricity 9001 with eleqtnicity 14 days z electricity clean kegs refill (ia electri C.D. estimated that about 30% of all labor was required for the Boiling operation 50.98 for the Fermenting operation, and 1095 for cleaning and refilling the half-kegs. You discussed the instand outs of overhead a location and decided that all overhead items should be allocated based on direct labor cost. You noted that other than the keg Nyashing machine no additions had been made to the $130.000 worth of brewing equipment you remembered from your premous engagement with Donnnstream At the end of the quarter you did an inventory, and found that CD had one batch (12 barrels that aadust completedbeiling and needed to have the hops strained out (virtually complete in the Boiling operation, and one patch in the middle of the Fermenting operation the yeast had already been added). The recipe for each 12 barre batch of froth call for 20 pounds of caney Extract ten pounds of wheat extra ct. one brick of yeast (each of which can be used in four batc ), two business ofiliops, and 372 gallons of water. Ninety-six hala kegs 48 barrels) that had just been filled and stabilized were in the refrigeraton keady to be taken to theinend's out where it would be s010. Required: In answering the folowing questions, give C.D. sufficient deta s 50 that you can list from this, in the near future and ad. can continue without you. 1 lima three grocesses of Bolle Fermentia and Shinninn man ima na shina marle to nerobia - baza +225 PEN were to search o o d Beginning Inventories Barley extract (500 pounds) Wheat extract (100 pounds) Hops (4 bushels) Yeast (5 bricks) $ 1,050 275 40 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. Fermenting Department Soiling Department Add extract Remove hops, Water hons boil with Ex hours Add yeast emove yeast SE cool with electricity ( 16 hours) (19% electricity) ferment with electricity 3 days) 50% electricity cool with electricity A days ( 25% electricity) Shipping Departme Ship daan kegs and refill (10% electricity CD estimated that apout 30% of all labor was required for the Boiling operation. 608 for the Fermenting operation, and 10-4 for cleaning and refilling the half-kegs. You discussed the ins and outs of overhead allocation and decided that a l overhead items should be a located based on direct abor cost. You noted that other than the keg washing machine, no additions had been made to the $180.000 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. sad one batch (12 barrels that had just completed boiing and needed to have the hops strained out virtually complete in the Boiling operation, and one batch in the mida e of the Fermenting operation (the yeast had already been added). The recipe for each 12 barrel batch of Froth cais for 20 pounds of baney extract ten pounds of wheat extract. one brick of yeast (each of which can be used in four batches), two bushes of hoes. and 372 ions of water. Ninety-six half kegs 43 barre 5) that had just been filed and stap ized were in the refrigerator ready to be taken to the friends oub where it would be sold. Regulred: in answering the following cuestions, give C.D. sufficient details so that you can rete from this job in the near future and cocon continue Without You Here aree Honrecses of Raina Fermeating area what in malaysia in he mana carrerard this herinne atka z PIS e to search O.; Transaction Ger Debit Credit 3 Cash 48,600.00 Sales 48,800.00 b 4,200.00 2,750.00 Direct materials inventory: Barley Direct materials Inventory: Wheat Direct materials inventory: Hops Direct materials inventory: Yeast Cash OOOOO 2.400.00 140.00 9,490.00 c 87.00 X Direct materials Inventory: Water Factory overhead 33.00 X Oo Cash 105.00 d Work in process inventory: Boiling Work in process inventory: Fermenting Work in process inventory: Shipping Cash 3.720.00 7.440.000 1.240.00 12.400.00 e Factory overhead 40.00 Excise tax $ * * 9.720.00 & 3.800.00 $ Interest expense Cash 16.490.00 X General & administrative expenses 2 285.00 12.000.00 3.600.00 Equipment Keg washing machine Interest expense Equipment Hali-Kegs 3.000.00 Bren 1 of Nex 0.00 CIT 8 14 Entry to record cash disbursements for water. The company started 1,044 barrels (87 batches) this quarter. All water not purchased for brewing is recorded as factory overhead. Transaction General Journal Debit Credit Direct magna's loventory. Water Factory overhead Shakti SHAKERERERERERE 105.00 Clear ener Viceperellaumal Journal entry worksheet