Chapter 13, Problem 13.31C

To determine

1.

Introduction:

In the year 2014, we have found the key milestones in our execution of the strategies. We have completed our acquisition form the ok kelsen group, which has given us the importance growth platform for baked snacks in china and also Hong Kong. Plum become the big brand of organic in the body food in the U.S in the fourth quarter and also achieve. Company invested in our first marketing programs for the build bolt house farms brand and expected the distributed of the bolt house product, driving to focus on growth. Company divested the low-growing European simple meals business to focus on growth and find the opportunities in Asia and Latin America also expanded our sweet biscuit business in Indonesia, key developing market.

To choose:

Find the composition of the beginning and ending inventory for each of the following accounts: raw material, work in process and finished goods.

Explanation of Solution

Particular	2012	2013	2014
Raw material Work in process Finished good	277 0 437	364 0 561	399 0 617

To determine

2.

Introduction:

In the year 2014, we have found the key milestones in our execution of the strategies. We have completed our acquisition form the ok kelsen group, which has given us the importance growth platform for baked snacks in china and also Hong Kong. Plum become the big brand of organic in the body food in the U.S in the fourth quarter and also achieve. Company invested in our first marketing programs for the build bolt house farms brand and expected the distributed of the bolt house product, driving to focus on growth. Company divested the low-growing European simple meals business to focus on growth and find the opportunities in Asia and Latin America also expanded our sweet biscuit business in Indonesia, key developing market.

To choose:

Find the cost of goods sold.

Explanation of Solution

Particular	2012	2013	2014
Cost of sale	4,365	5,140	5,370

To determine

3.

Introduction:

In the year 2014, we have found the key milestones in our execution of the strategies. We have completed our acquisition form the ok kelsen group, which has given us the importance growth platform for baked snacks in china and also Hong Kong. Plum become the big brand of organic in the body food in the U.S in the fourth quarter and also achieve. Company invested in our first marketing programs for the build bolt house farms brand and expected the distributed of the bolt house product, driving to focus on growth. Company divested the low-growing European simple meals business to focus on growth and find the opportunities in Asia and Latin America also expanded our sweet biscuit business in Indonesia, key developing market.

To choose:

Form the consolidated balance sheet, find the amount of inventories

Answer to Problem 13.31C

Particular	2012	2013	2014
Inventories	714	925	1016

Explanation of Solution

Particular	2012	2013	2014
Inventories	714	925	1016

To determine

4.

Introduction:

In the year 2014, we have found the key milestones in our execution of the strategies. We have completed our acquisition form the ok kelsen group, which has given us the importance growth platform for baked snacks in china and also Hong Kong. Plum become the big brand of organic in the body food in the U.S in the fourth quarter and also achieve. Company invested in our first marketing programs for the build bolt house farms brand and expected the distributed of the bolt house product, driving to focus on growth. Company divested the low-growing European simple meals business to focus on growth and find the opportunities in Asia and Latin America also expanded our sweet biscuit business in Indonesia, key developing market.

To choose:

Find the overview of gross profit

Explanation of Solution

For the 2014 Gross profit, as a percent of sales, decreased to 35.1% from 36.2% a year ago. The decrease was primarily due to cost inflation and increased supply chain costs, higher promotional spending and the impact of acquisitions, partly offset by productivity improvements and a reduction in restructuring-related costs.

For the 2013 Gross profit, as a percent of sales, decreased to 36.2% from 39.2% a year ago. The decline was primarily attributable to the acquisition of Bolthouse Farms and the impact of restructuring-related costs recognized in the current year.

For the 2012 Gross profit, as a percent of sales, decreased to 38.8% from 40.2% a year ago.

To determine

(a)

Introduction:

In the year 2014, we have found the key milestones in our execution of the strategies. We have completed our acquisition form the ok kelsen group, which has given us the importance growth platform for baked snacks in china and also Hong Kong. Plum become the big brand of organic in the body food in the U.S in the fourth quarter and also achieve. Company invested in our first marketing programs for the build bolt house farms brand and expected the distributed of the bolt house product, driving to focus on growth. Company divested the low-growing European simple meals business to focus on growth and find the opportunities in Asia and Latin America also expanded our sweet biscuit business in Indonesia, key developing market.

To choose:

Find the cost of manufactured.

Explanation of Solution

Particular	2012	2013	2014
cost of goods manufactured	6,020	6,972	7076

To determine

(B)

Introduction:

In the year 2014, we have found the key milestones in our execution of the strategies. We have completed our acquisition form the ok kelsen group, which has given us the importance growth platform for baked snacks in china and also Hong Kong. Plum become the big brand of organic in the body food in the U.S in the fourth quarter and also achieve. Company invested in our first marketing programs for the build bolt house farms brand and expected the distributed of the bolt house product, driving to focus on growth. Company divested the low-growing European simple meals business to focus on growth and find the opportunities in Asia and Latin America also expanded our sweet biscuit business in Indonesia, key developing market.

To choose:

Calculate the total amount of combined cost incurred in 2014, 2013, 2012

Explanation of Solution

Particular	2012 ($)	2013 ($)	2014 ($)
Raw material Direct labor Manufacturing overhead	55.3 36.8 58.01	57.2 35.5 59.8	57.6 38.7 57.03

(these data taken form the annual report)

To determine

(C)

Introduction:

In the year 2014, we have found the key milestones in our execution of the strategies. We have completed our acquisition form the ok kelsen group, which has given us the importance growth platform for baked snacks in china and also Hong Kong. Plum become the big brand of organic in the body food in the U.S in the fourth quarter and also achieve. Company invested in our first marketing programs for the build bolt house farms brand and expected the distributed of the bolt house product, driving to focus on growth. Company divested the low-growing European simple meals business to focus on growth and find the opportunities in Asia and Latin America also expanded our sweet biscuit business in Indonesia, key developing market.

To choose:

Find the ratio of cost of sale to net sale

Explanation of Solution

Particular	2012	2013	2014
Net sales Cost of sale Cost of sale to net sale ratio	7175 4365 60.83% (wn1)	8052 5140 63.83%(wn2)	8,268 5370 64.50%(wn3)

This formula is used

  $\begin{array}{l}\text{cost of sale to net sale ratio=}\frac{\text{cost of sale}}{\text{net sale}}\times 100\\ \end{array}$

WN 1. $\text{cost of sale to net sale ratio=}\frac{4365}{7175}\times 100=60.83$

WN 2. $\text{cost of sale to net sale ratio=}\frac{5140}{8052}\times 100=63.83$

WN 3. $\text{cost of sale to net sale ratio=}\frac{5370}{8268}\times 100=64.50\%$