5.Mixing: This process is only completed for chocolate milk and eggnog. In this process, sugar and other ingredients are added and mixed into the milk to create the finished product. 6.Bottling:Bottling is a very costly process for Maple Hill. Maple Hill uses glass bottles to package its milk products, which requires more filling time than paper or plastic containers. Before the bottles can be filled, employees must sterilize and sanitize the glass bottles. The clean bottles are then placed on a conveyer belt to be filled. The filling of the bottles is completed by a machine that fills each bottle and also places plastic caps on the bottles. An employee removes the filled bottles from the conveyor belt and places them into crates. 7.Warehousing: When the crates are filled, an employee moves them to the refrigeration room in the warehouse. They are stored in the room until they are shipped. In addition to the refrigeration room, the warehouse also holds new and returned glass bottles as well as ingredients like sugar that are added to the milk in the mixing process. The products produced by Maple Hill and current prices received by Maple Hill are as follows: ▪Whole Milk, $1.90 per quart ▪Low-Fat Milk, $1.90 ▪Skim Milk, $1.90 ▪Chocolate Milk, $1.90 ▪Eggnog, $2.25 Bottles are produced in one size –quarts. Selected data for the most recent year are as follows: Whole Milk Low-Fat Milk Skim Milk Chocolate Milk Eggnog 145 500 333 455 525 Number of Invoices 292,000 730,000 511,000 219,000 187,000 Number of Bottles Produced 373 933 653 290 270 Number of Purchase Orders 48 66 85 71 43 Number of Customers 166 304 236 144 135 Labor Hours, Warehousing 2 2 3 3 4 Number of Quality Checks per Order 87 422 345 132 112 Machine Hours, Separating 0 0 0 385 355 Machine Hours, Mixing 199 433 312 187 177 Machine Hours, Bottling 98 312 177 88 122 Labor Hours, Clean and Repair Maple Hill’s Accounting SystemMaple Hill has a conventional accounting system which keeps track of overhead costs in four categories: bottling equipment, facilities, processing, and general and administrative. There are sub-accounts in each of these accounts
CSAC 2510 Fall 2019 4 except for bottling equipment. The accounts, sub-accounts and costs for the most recent operating year are shown in Table 1. These costs are often called resource costs, and are labeled as such in the OROS software system. Maple Hill grows on site most of the feed needed at the dairy farm. The cost of producing the feed and some additional feed purchased during the year is included under labor and materials for other processing costs. Table 1: Overhead (Resource) Costs for Maple Hill Dairy Farm ACCOUNTS SUB ACCOUNTS ACTUAL COSTS Bottling Equipment $1,528,620 Other Facilities Costs Utilities 72,395 Depreciation 22,976 Property Tax 10,014 Total Other Facilities Cost $105,385 Other Processing Costs Labor and materials 428,800 Supplies 4,278 Equipment repairs and maintenance 21,565 Depreciation 13,688 Total Other Processing Cost $ 468,331 General and Administrative Administration 105,522 Interest Expense 23,471 Total General and Administrative $ 128,993Total $ 2,231,329 In addition to the overhead costs, Maple Hill has direct costs for bottles and other materials.
You've reached the end of your free preview.
Want to read all 6 pages?
- Spring '19