Consider the following revenue and cost data for Shannon’s Brewery in Keller, Texas. Shannon’s sells 35% of its craft beer production through its own on-premise taproom. The bulk of its sales (65%) are made off-premise via various retail outlets including supermarkets, bars, and restaurants. 40% of its of sales (on-premise and off-premise) consists of package sales (bottles and cans). Of this 40%, beer sold in cans accounts for 80% with sales of bottled beer accounting for the remaining 20%. Finally, the bulk of Shannon’s craft beer sales (60%) occurs in kegs (31 gallons per keg). Assume that overall sales for FY 2018 are expected to be $1,020,181. Given the proportions of beer sold in kegs, bottles, and cans, what will be the predicted dollar sales of beer sold in kegs? Round your answer to the nearest one dollar. 2. Assume the following costs in each of the categories identified in question one are: Packaged (Cans & Bottles) $158,270 Kegs $81,907 Shrinkage/WIP Loss $42,000 Contract Labor $9,000 Direct Labor $240,000 Freight $18,000 Consumer Advertising $30,000 Trade Promotion $30,000 Sales Promotion $18,000 Salaries & Benefits $180,000 What is Shannon's cost of goods sold?
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1. Consider the following revenue and cost data for Shannon’s Brewery in Keller, Texas. Shannon’s sells 35% of its craft beer production through its own on-premise taproom. The bulk of its sales (65%) are made off-premise via various retail outlets including supermarkets, bars, and restaurants. 40% of its of sales (on-premise and off-premise) consists of package sales (bottles and cans). Of this 40%, beer sold in cans accounts for 80% with sales of bottled beer accounting for the remaining 20%. Finally, the bulk of Shannon’s craft beer sales (60%) occurs in kegs (31 gallons per keg). Assume that overall sales for FY 2018 are expected to be $1,020,181. Given the proportions of beer sold in kegs, bottles, and cans, what will be the predicted dollar sales of beer sold in kegs? Round your answer to the nearest one dollar.
2.
Assume the following costs in each of the categories identified in question one are:
|
Packaged (Cans & Bottles) |
$158,270 |
|
Kegs |
$81,907 |
|
Shrinkage/WIP Loss |
$42,000 |
|
Contract Labor |
$9,000 |
|
Direct Labor |
$240,000 |
|
Freight |
$18,000 |
|
Consumer Advertising |
$30,000 |
|
Trade Promotion |
$30,000 |
|
Sales Promotion |
$18,000 |
|
Salaries & Benefits |
$180,000 |
What is Shannon's cost of goods sold?
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