Mr. Beridon received your requests for information and returned data which you have compiled in an Microsoft Excel spreadsheet (see document template). He also said, "We grow sod and trees at Jeemp Farms. We sell the sod mainly to home builders in the area, although we sell to some individuals who are purchasing square footages to re-sod their yard. Many home builders will purchase to sod an entire subdivision. They then may come back to us to purchase trees for the yards. It really is a package deal. For builders like that, we are a one-stop-shop. In most cases, however, we sell the trees to orchards and some individuals. The purchaser is responsible for all shipping costs related to their product."

"Our production process is different for each product. For sod, we plant the seed, irrigate, cut, and roll the sod and then transport it. For the trees, we plant the root stock, graft the tree, water until a particular maturity and then dig it up and sell it. We inspect the plants as needed to make sure we are producing a quality product that is disease-free."

"We have delayed purchasing some machinery that reduces time for the planting of the trees because it is a large up-front cost and we don't want to have a huge outlay of cash if our profits keep going down."

"The grass does not require as much irrigation as the trees, as it is at a lower elevation than the tree acres and is closer to the creek; it gets a lot of the run off."

"Historically, we have always been able to sell everything we produce. Hopefully, that will continue since Houston is expanding rapidly."

QUESTION: Discuss whether Jeemp Farms should install an ABC accounting system, continue with the existing traditional accounting system, or continue with the traditional accounting system with periodic ABC analysis to evaluate product profitability

old.png + Add to X Edit & Create AutoSaves acc349_v6_jeemp_template Protected View O Search Jacob Proctor File Home Insert Page Layout Formulas Data Review View Help PROTECTED VIEW Be careful files from the Internet can contain viruses. Unless you need to edit it's safer to stay in Protected View. Enable Editing A 16 o D E F G H M N January February March April May June July August September October November December TOTAL 140,763 178256 85,948 177,005 145.800 159,626 116,407 130,832 62,790 132715 62081 164628 789 987 456 456 867 680 457 667 907 789 956 897 A 1 produced and sold of each product 2 St. Augustine Sod in sq feet 3 Texas Pecan Trees 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 2 23 14 25 28 Quantity Sold Traditional Costing ADC Costing Overhead a photos + Add to d X Edit & Create Autosavs acc49_jeemp_template Protected View Search Jacob Presto Home Insert Page Layout Formulas Data Review View Help O PROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safe to stay in Protected View Enable Editing F29 A C D E H M N O 1 Basic information 2 3 Sod Trees 12.99 $ 0.99 $ 2.00 $ 0.2 0.38 0.01 0.09 0.009 units 5 Selling Price Per Unit $ 6 Direct Materials Per Unit $ 7 Direct Labor Per Unit $ & Direct Labor Hours Per Unit 9 Estimated Annual Production and Sales 10 11 Estimated Overhead (Last year's numbers) 12 Planting 13 Irrigation 14 Product Support 15 Harvesting 16 Inspections 17 Property Taxes 18 TOTAL 19 20 47,000 19,000 19,046 21,567 4,564 6,754 117,931 22 Estimated Total Direct Labor Hours 23 Predetermined Overhead Rate DO NOT ROUND DO NOT ROUND 25 Traditional Casting 26 Sales 27 Direct Materials 25 Direct Labor Traditional Coating ABC Corting Overhead ejemom Protected Vow- Page Layout Formulas Review View Help (PROTECTED VIEW Becadestrom the Internet can contains. Unless you need to edit assure to stay in Protected View Enabiditing G H 1 0.99 $ 2.00 $ 0.2 D 0.01 0.09 0.009 units Direct Materials Per Unit $ 7 Dect Labor Per Unit $ 3 Direct Labor Hours Per Unit 9 Estimated Annual Production and Sales 10 11 Estimated Overhead last year's numbers 12 Planting 13 wigation 14 Product Support 15 harvesting 16 Inspections 17 Property Taxes 18 TOTAL 47,000 19,000 19.046 21,567 4,564 6,754 117,931 DO NOT ROUND DO NOT ROUND 21 22 Estimated Total Direct Labor Hours 33 Predetermined Overhead Rate 24 25 Traditional Costing 26 Sales 27 Direct Materials 28 Direct labor 20 Manufacturing Overhead 30 Product Margin Screenshots 32 per unit 23 Quantit old Traditional Costing ABC Costing Overhead Photos - ABC costing.png See photos + Add to 6 3 N % Edit & Create e Share AutoSave acc3496 jecmp_template Protected View Search Jacob Procta File Home Insert Page Layout Formulas Review View Help PROTECTED VIEW Be careful files from the internet can contain viruses. Unless you need to edit, 's safe to stay in Protected View Enable Editing H 7 Texas Pecan Trees year old trees B 9 10 11 12 Overhead 13 Planting 14 Irrigation 15 Product Support 16 Harvesting 17 Inspections 18 Property Taxes 19 TOTAL 20 21 ABC Costing 22 Sales 23 Direct Materials 24 Direct Labor 25 Manufacturing Overhead 26 Product Margin 47,000 19,000 19,016 21,567 4564 6,754 117.931 Trees Sod 28 per unit 29 30 31 32 34 Quant Sold Traditional Couting ABC Costing Overhead tooni Photos - overheads png See photos + Add to 3 AutoSave acc3496 jecmp_template Protected View e Search Home File Insert Page Layout Formulas Data Review View Help PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safe to say in Protected View. Enable Editing A1 Estimated Overhead (last year's numbers) D E F H J K L N O 1 Estimated Overhead (Last year's numbers) 2 Planting 47,000 3 Irrigation 19,000 4 Product Support 19,046 5 Harvestine 21,567 6 Inspections 4,564 7 Property Taxes 6,754 8 TOTAL 117,931 9 10 11 12 13 14 15 16 17 18 19 20 21 23 Screenshot saved 24 25 26 27 Quantity Sold Tradical Costing ABC Costing Overhead