CRITICAL THINKING Decision Case 20-1 Davidson raises worms Billy Davidson operate Billy's warm Farm in Mississippi, has invested income in fishing. He sells a box of 20 for Davidson ner this worms 24% annual rate of return on his 60, the worm farm. He had hoped eo earn a not total out fears be is After looking ar the farm's bank Davidson return. evaluate the farm's performance, he prepared the following production as zero the worms addition to The Goods expenses total s2.000 (in they reach the required size. Monthly operating BILLY s woRM FARM DEPARTMENT Production cost une 30, 2016 Month Ended units to account for Total units to account for Units accounted for ompleted and transferred out 23.600 26,000 30,000 Total units accounted for Total Direct Costs Materials Costs to account for 5.020 S 39,940 255.000 52,460 costs added during period 320,960 61,360 192,400 Total costs to account for 23,600 26,000 Divided by Total EUP 12.24 7.40 2.24 Cost per equivalent unit s 44,800 s 148,000 s 52,000 s 244,800 Completed and transferred out 76,160 9,360 22,400 Ending work in process S 320,960 192,400 61,360 67,200 Total costs accounted for Requirements Billy Davidson has the following questions about the farms performance during June. 1. What is the cost per box of worms sold? (Hint This is the unit cost of the boxes completed and shipped out of brooding.) 2. What is the gross profit per box