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Please help! I have provided the scenario. I need to fill in the computation (green photos). Thank you in advance. Apple Hilly Farms Ned Hilly

Please help! I have provided the scenario. I need to fill in the computation (green photos). Thank you in advance. image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Apple Hilly Farms Ned Hilly was an investment banker and worked in San Francisco at a large bank. As retirement got closer his wife, Sally, and him decided to spend their retirement up in the Sierra Nevada foothills by buying an apple farm in Apple Hill. All their kids were grown and their youngest daughter, Nikki, was finishing an accounting degree at Sac State, whom they were hoping would help them out with the books once she was done. A few years go by and the farm life is bustling. They had a U-Pick your own apples at the farm which cut down costs of running the farm, though they ended up with more apples than they could sell that first year. The second year, Sally came up with the idea of opening a bakery on the farm. She was an excellent baker; she makes the best apple pie west of the Mississippi, at least her family thought so. The bakery was a success that year, more so than expected. Sally made homemade apple pies and caramel apples with her special caramel sauce. In the following year, they expanded bakery operations to include more staff and an extra space for baking. Ned wasn't too sure if the expansion was going to be profitable, he had an idea of the costs involved with apple pie and caramel apple production, but he couldn't pinpoint the details. Since Apple Hill is a seasonal business he wanted to know how well his business did in the peak season to ensure that it made enough to cover the costs in the off-season. Luckily, Nikki just graduated in May and she would be able to work with Ned to work out the details and come up with some possible advice and solutions to his questions. Nikki started by talking with her parents about some of the estimated sales and costs that they thought would incur for the month of September. Here are some of those estimates: Caramel Total Apple Ples Apples Sales price (per unit) $25.00 $8.50 Expected sales units (for September) 17,000 7,500 9,500 Total $21,900.00 Expected Manufacturing costs: Fixed OH (per month) Direct labor (per unit) Direct materials (per unit) Variable OH (per unit) Expected Marketing and admin costs: Fixed costs (per month) Variable costs (per unit) Apple Pies $17,625.00 $3.75 $3.00 $2.25 Caramel Apples $4,275.00 $2.10 $2.00 $0.90 $6,675.00 $5,250.00 $1.45 $1,425.00 $0.35 Additionally, Sally informed her that the farm received a special order to sell their apple pies and caramel apples at the local county fair in September. Sally wanted to sell 3.500 pies and 4,500 caramel apples for a discounted price of $20.00 and $7.50, respectively. With the number of staff and the size of the bakery, Nikki determined that the maximum capacity for the bakery is 3,800 labor hours a month. At the current projected sale amounts she expects that they'll need 3,205 hours to meet their regular sales volume. After review of the salaries of all the staff, Nikki determined that the average hourly wage was $15.00. Ned was also concerned about how much it cost to keep apple pie inventory on hand at the end of the month, caramel apples should be sold within a couple days, so no inventory is left at the end of the month. Since there is a limited shelf life for the apple pies, Ned and Sally try and keep the ending inventories in line with next month's expectations. They estimated that they'd have to start 8,000 apple pies in order to have 1,000 apple pies in-process at the end of the month and 500 finished pies. At the end of August there were 500 pies that were in-process and no finished pies. The variable costs associated with these inventories were as follows: Beginning WIP inventory September costs DM $1,675 $20,000 Conversion $3,500 $38,500 And the conversion cost for the in-process pies is 50% completed and 100% for direct materials. (Use the expected for September Apple Pie Sales for determining units started and units completed and transferred out) a. Computations for 7,500 Apple Pies 1. Variable Manufacturing Costs per unit Direct Materials Direct Labor Variable manufacturing cost Variable manufacturing cost $ $ $ $ 3.00 3.75 2.25 9.00 2. Full Unit Cost per unit Full unit cost 3. Variable Cost per Unit Variable cost 4. Full Absorption Cost per Unit Full absortion cost Full absortion cost 5. Prime Cost per Unit Prime cost 6. Conversion Cost per Unit Conversion cost 7. Profit Margin per Unit Profit margin 8. Contribution Margin per Unit Contribution margin 9. Gross Margin per Unit Gross margin Apple Hilly Farms Ned Hilly was an investment banker and worked in San Francisco at a large bank. As retirement got closer his wife, Sally, and him decided to spend their retirement up in the Sierra Nevada foothills by buying an apple farm in Apple Hill. All their kids were grown and their youngest daughter, Nikki, was finishing an accounting degree at Sac State, whom they were hoping would help them out with the books once she was done. A few years go by and the farm life is bustling. They had a U-Pick your own apples at the farm which cut down costs of running the farm, though they ended up with more apples than they could sell that first year. The second year, Sally came up with the idea of opening a bakery on the farm. She was an excellent baker; she makes the best apple pie west of the Mississippi, at least her family thought so. The bakery was a success that year, more so than expected. Sally made homemade apple pies and caramel apples with her special caramel sauce. In the following year, they expanded bakery operations to include more staff and an extra space for baking. Ned wasn't too sure if the expansion was going to be profitable, he had an idea of the costs involved with apple pie and caramel apple production, but he couldn't pinpoint the details. Since Apple Hill is a seasonal business he wanted to know how well his business did in the peak season to ensure that it made enough to cover the costs in the off-season. Luckily, Nikki just graduated in May and she would be able to work with Ned to work out the details and come up with some possible advice and solutions to his questions. Nikki started by talking with her parents about some of the estimated sales and costs that they thought would incur for the month of September. Here are some of those estimates: Caramel Total Apple Ples Apples Sales price (per unit) $25.00 $8.50 Expected sales units (for September) 17,000 7,500 9,500 Total $21,900.00 Expected Manufacturing costs: Fixed OH (per month) Direct labor (per unit) Direct materials (per unit) Variable OH (per unit) Expected Marketing and admin costs: Fixed costs (per month) Variable costs (per unit) Apple Pies $17,625.00 $3.75 $3.00 $2.25 Caramel Apples $4,275.00 $2.10 $2.00 $0.90 $6,675.00 $5,250.00 $1.45 $1,425.00 $0.35 Additionally, Sally informed her that the farm received a special order to sell their apple pies and caramel apples at the local county fair in September. Sally wanted to sell 3.500 pies and 4,500 caramel apples for a discounted price of $20.00 and $7.50, respectively. With the number of staff and the size of the bakery, Nikki determined that the maximum capacity for the bakery is 3,800 labor hours a month. At the current projected sale amounts she expects that they'll need 3,205 hours to meet their regular sales volume. After review of the salaries of all the staff, Nikki determined that the average hourly wage was $15.00. Ned was also concerned about how much it cost to keep apple pie inventory on hand at the end of the month, caramel apples should be sold within a couple days, so no inventory is left at the end of the month. Since there is a limited shelf life for the apple pies, Ned and Sally try and keep the ending inventories in line with next month's expectations. They estimated that they'd have to start 8,000 apple pies in order to have 1,000 apple pies in-process at the end of the month and 500 finished pies. At the end of August there were 500 pies that were in-process and no finished pies. The variable costs associated with these inventories were as follows: Beginning WIP inventory September costs DM $1,675 $20,000 Conversion $3,500 $38,500 And the conversion cost for the in-process pies is 50% completed and 100% for direct materials. (Use the expected for September Apple Pie Sales for determining units started and units completed and transferred out) a. Computations for 7,500 Apple Pies 1. Variable Manufacturing Costs per unit Direct Materials Direct Labor Variable manufacturing cost Variable manufacturing cost $ $ $ $ 3.00 3.75 2.25 9.00 2. Full Unit Cost per unit Full unit cost 3. Variable Cost per Unit Variable cost 4. Full Absorption Cost per Unit Full absortion cost Full absortion cost 5. Prime Cost per Unit Prime cost 6. Conversion Cost per Unit Conversion cost 7. Profit Margin per Unit Profit margin 8. Contribution Margin per Unit Contribution margin 9. Gross Margin per Unit Gross margin

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