Using the accrual method of reporting calculate the net profit a dairy unit. The estimate should be
Question:
Using the accrual method of reporting calculate the net profit a dairy unit. The estimate should be made on labor inputs, water, and electricity use, and other major inputs. You are expected to show workings and to clearly state your assumptions made. Small items that together make up less than 10% of expenditure can be group into a category called miscellaneous
Expenditure Income
Light bills= $ 150,000 Milk Sale= $500,000
calf sale=$ 90,000
water bills= $82,000 heifer sale= $ 200,000
Bull sale = $500,000
beef carcass= 30kg per animal
slaughtered= 25 animals
Beef sale= $600 per lbs. x 30kg x 25 animals= $450,00
manure= $600 per bags
labor cost= $30,000
Medication = $40, 000
feed= ( 1 bag of feed cost $1,700 and 200 bags are bought )= $340,000
Miscellaneous:
Replace tools ( 5 tools )= $ 6,900
White wash ( 25kg)= $3000
soap( 5 gallons)= $1500
bleach(5 gallons)= $1200
Disinfectant ( 5 gallons)= $2000
300 bags of manure
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren