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Carlo Johnson operates Carlo's Cricket Farm in Clarkston, Georgia. Carlo's (Click the icon to view the production cost report-Part 1.) raises about 18 million crickets a month. Most are sold to pet stores at $10.59 for a box of 1,000 crickets. Pet stores sell the crickets for $0.05 to $0.10 each as live Click the icon to view the production cost report-Parts 23.) (Click on the icon to view additional information.) Read the requirements feed for reptiles. Requirement 1. What is the cost per box of crickets sold? (Hint: This is the cost of the boxes completed and shipped out of brooding.) First, identify the labels to compute the average cost per box transferred out, then compute the average cost per box shipped out of brooding. (Enter your answer to the nearest cent.) Average cost per box Requirement 2. What is the gross profit per box? First, identify the labels to compute the gross profit per box, then compute the gross profit per box. (Enter all dollar amounts to the nearest cent.) Gross profit per box Requirement 3. How much operating income did Carlo's Cricket Farm make in June? First, identify the labels to compute the operating income, then compute the operating income for June. Operating Income Requirement 4. What is the return on Johnson's investment of $540,000 for the month of June? (Compute this as June's operating income divided by Johnson's investment, expressed as a percentage.) (Round the return on investment to the nearest hundredth of a percent, X.XX%) The retum on Johnson's investment of $540,000 for the month of June is Requirement 5. What monthly operating income would provide a 3.45% monthly rate of return? What price per box would Carlo's Cricket Farm have had to charge in June to achieve this target monthly rate of return? First, identify the labels to compute the desired monthly operating income, then compute the amount Monthly operating income Identify the labels to compute the selling price per box needed to achieve a 3.45% monthly rate of return, then compute the amount Selling price per box i More Info X Raising crickets requires a two-step process: incubation and brooding. In the first process, incubation, employees place cricket eggs on mounds of peat moss to hatch. In the second process, employees move the newly hatched crickets into large boxes filled with cardboard dividers. Depending on the desired size, the crickets spend approximately two weeks in brooding before being shipped to pet stores. In the brooding process, Carlo's crickets consume about 16 tons of food and produce 12 tons of manure. Johnson has invested $540,000 in the cricket farm, and he had hoped to earn a 41.4% annual rate of return, which works out to a 3.45% monthly return on his investment. After looking at the farm's bank balance, Johnson fears he is not achieving this return. To get more accurate information on the farm's performance, Johnson bought new accounting software that provides weighted-average process cost information. After Johnson input the data, the software provided the following reports. However, Johnson needs help interpreting these reports. Johnson does know that a unit of production is a box of 1,000 crickets. For example, in June's report, the 2,000 physical units of beginning work in process inventory are 2,000 boxes (each one of those boxes contains 1,000 immature crickets). The finished goods inventory is zero because the crickets ship out as soon as they reach the required size. Monthly operating expenses total $9,500 (in addition to the costs that follow). Print Done Data Table - B 1 D E Step 1: Step 2: Equivalent Units Flow of Physical Transferred- Direct Conversion Units in Materials Costs 2.000 32,000 6 Carlo's Cricket Farm-Brooding Department Month Ended June 30 2 Production Cost Report (part 1 of 3) 3 Flow of Production 4 Units to account for: 5 Beginning work in process, June 1 Plus: Transferred in during June Total physical units to account for 8 Units accounted for: Completed and shipped out during June 10 Plus: Ending work in process, June 30 Total physical units accounted for 12 Total equivalent units 7 34,000 9 29,000 29,000 29,000 29,000 5,000 34,000 5,000 3,000 1,500 11 34,000 32.000 30,500 Print Done Data Table - D E Transferred in Total Direct Conversion Materials Costs 36,000 $ 4.730$ 164,000 52.000 $ Carlo's Cricket Farm-Brooding Department Month Ended June 30 Production Cost Report (part 2 of 3) 3 Beginning work in process, June 1 4. Plus: Costs added during June 5 Total costs to account for 6 Divided by Total equivalent units 7 Cost per equivalent unit 51,230 10,500 $ 50,020 266,020 S 317250 60,520 S 34,000 200.000 $ 32,000 56.730 S 30,500 s 1.78 5 6.25 $ 1.86 B D E 1 Transferred. in Direct Materials Conversion Costs 2 Total 3 5 29,000 Carlo's Cricket Farm-Brooding Department Month Ended June 30 Production Cost Report (part 3 of 3) Assignment of total cost 4 Completed and transferred out Equivalent units completed and transferred out Multiplied by: Cost per equivalent unit Costs assigned to units completed and transferred out 8 Ending work in process Equivalent units in ending WIP 10 Multiplied by: Cout per equivalent unit Costs assigned to units in ending WIP 12 Total costs accounted for 29,000 1.78 5 29.000 1.86 6 $ 6.25 S 7 $ 51.620 $ 181,250 $ 53.940 $ 286,810 9 5,000 1.788 3,000 6.25 1,500 1.86 $ 11 $ 8,900 $ 18,750 S 2,790 30.440 317250 $ Print Done i Requirements X Carlo Johnson has the following questions about the farm's performance during June: 1. What is the cost per box of crickets sold? (Hint: This is the cost of the boxes completed and shipped out of brooding.) 2. What is the gross profit per box? 3. How much operating income did Carlo's Cricket Farm make in June? 4. What is the return on Johnson's investment of $540,000 for the month of June? (Compute this as June's operating income divided by Johnson's investment, expressed as a percentage.) 5. What monthly operating income would provide a 3.45% monthly rate of return? What price per box would Carlo's Cricket Farm have had to charge in June to achieve this target monthly rate of return? Print Done Carlo Johnson operates Carlo's Cricket Farm in Clarkston, Georgia. Carlo's (Click the icon to view the production cost report-Part 1.) raises about 18 million crickets a month. Most are sold to pet stores at $10.59 for a box of 1,000 crickets. Pet stores sell the crickets for $0.05 to $0.10 each as live Click the icon to view the production cost report-Parts 23.) (Click on the icon to view additional information.) Read the requirements feed for reptiles. Requirement 1. What is the cost per box of crickets sold? (Hint: This is the cost of the boxes completed and shipped out of brooding.) First, identify the labels to compute the average cost per box transferred out, then compute the average cost per box shipped out of brooding. (Enter your answer to the nearest cent.) Average cost per box Requirement 2. What is the gross profit per box? First, identify the labels to compute the gross profit per box, then compute the gross profit per box. (Enter all dollar amounts to the nearest cent.) Gross profit per box Requirement 3. How much operating income did Carlo's Cricket Farm make in June? First, identify the labels to compute the operating income, then compute the operating income for June. Operating Income Requirement 4. What is the return on Johnson's investment of $540,000 for the month of June? (Compute this as June's operating income divided by Johnson's investment, expressed as a percentage.) (Round the return on investment to the nearest hundredth of a percent, X.XX%) The retum on Johnson's investment of $540,000 for the month of June is Requirement 5. What monthly operating income would provide a 3.45% monthly rate of return? What price per box would Carlo's Cricket Farm have had to charge in June to achieve this target monthly rate of return? First, identify the labels to compute the desired monthly operating income, then compute the amount Monthly operating income Identify the labels to compute the selling price per box needed to achieve a 3.45% monthly rate of return, then compute the amount Selling price per box i More Info X Raising crickets requires a two-step process: incubation and brooding. In the first process, incubation, employees place cricket eggs on mounds of peat moss to hatch. In the second process, employees move the newly hatched crickets into large boxes filled with cardboard dividers. Depending on the desired size, the crickets spend approximately two weeks in brooding before being shipped to pet stores. In the brooding process, Carlo's crickets consume about 16 tons of food and produce 12 tons of manure. Johnson has invested $540,000 in the cricket farm, and he had hoped to earn a 41.4% annual rate of return, which works out to a 3.45% monthly return on his investment. After looking at the farm's bank balance, Johnson fears he is not achieving this return. To get more accurate information on the farm's performance, Johnson bought new accounting software that provides weighted-average process cost information. After Johnson input the data, the software provided the following reports. However, Johnson needs help interpreting these reports. Johnson does know that a unit of production is a box of 1,000 crickets. For example, in June's report, the 2,000 physical units of beginning work in process inventory are 2,000 boxes (each one of those boxes contains 1,000 immature crickets). The finished goods inventory is zero because the crickets ship out as soon as they reach the required size. Monthly operating expenses total $9,500 (in addition to the costs that follow). Print Done Data Table - B 1 D E Step 1: Step 2: Equivalent Units Flow of Physical Transferred- Direct Conversion Units in Materials Costs 2.000 32,000 6 Carlo's Cricket Farm-Brooding Department Month Ended June 30 2 Production Cost Report (part 1 of 3) 3 Flow of Production 4 Units to account for: 5 Beginning work in process, June 1 Plus: Transferred in during June Total physical units to account for 8 Units accounted for: Completed and shipped out during June 10 Plus: Ending work in process, June 30 Total physical units accounted for 12 Total equivalent units 7 34,000 9 29,000 29,000 29,000 29,000 5,000 34,000 5,000 3,000 1,500 11 34,000 32.000 30,500 Print Done Data Table - D E Transferred in Total Direct Conversion Materials Costs 36,000 $ 4.730$ 164,000 52.000 $ Carlo's Cricket Farm-Brooding Department Month Ended June 30 Production Cost Report (part 2 of 3) 3 Beginning work in process, June 1 4. Plus: Costs added during June 5 Total costs to account for 6 Divided by Total equivalent units 7 Cost per equivalent unit 51,230 10,500 $ 50,020 266,020 S 317250 60,520 S 34,000 200.000 $ 32,000 56.730 S 30,500 s 1.78 5 6.25 $ 1.86 B D E 1 Transferred. in Direct Materials Conversion Costs 2 Total 3 5 29,000 Carlo's Cricket Farm-Brooding Department Month Ended June 30 Production Cost Report (part 3 of 3) Assignment of total cost 4 Completed and transferred out Equivalent units completed and transferred out Multiplied by: Cost per equivalent unit Costs assigned to units completed and transferred out 8 Ending work in process Equivalent units in ending WIP 10 Multiplied by: Cout per equivalent unit Costs assigned to units in ending WIP 12 Total costs accounted for 29,000 1.78 5 29.000 1.86 6 $ 6.25 S 7 $ 51.620 $ 181,250 $ 53.940 $ 286,810 9 5,000 1.788 3,000 6.25 1,500 1.86 $ 11 $ 8,900 $ 18,750 S 2,790 30.440 317250 $ Print Done i Requirements X Carlo Johnson has the following questions about the farm's performance during June: 1. What is the cost per box of crickets sold? (Hint: This is the cost of the boxes completed and shipped out of brooding.) 2. What is the gross profit per box? 3. How much operating income did Carlo's Cricket Farm make in June? 4. What is the return on Johnson's investment of $540,000 for the month of June? (Compute this as June's operating income divided by Johnson's investment, expressed as a percentage.) 5. What monthly operating income would provide a 3.45% monthly rate of return? What price per box would Carlo's Cricket Farm have had to charge in June to achieve this target monthly rate of return? Print Done

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