Is my scenario A right? l can’t solve the answer. Can you direct me to it or provide some help

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New Bakery for Oz Bread Background Oz Bread, a rapidly developing new bakery in Melbourne, is facing a critical supply chainproblem. Mitchell McGuire, supply chain manager of Oz Bread, was asked by the boss tofind a solution. Given the continuous growth in business over the years, it is obvious thatthe current production and distribution network of the company needs to be restructured.Oz Bread started off with a single baking facility in Mentone. Every day, the freshly bakedbreads and pies are delivered to its shops located in Glen Waverley, Doncaster, MelbourneCBD, Thomastown, St. Albans, and Hoppers Crossing. Business is growing and soon themaximum daily production capacity at the Mentone baking plant will be reached. A quickdecision on building one or more new baking plants could save the company significantamount of money in lost sales in the future. A new baking plant will take a year to buildfrom planning to completion. For example, if Oz Bread decides in this year to build a newbaking plant, the earliest date the new facility is available will be next year. Oz Bread was founded eight years ago and has been producing since then fresh breads anddelicious gourmet meat pies for Melburnians. Current average daily demands for theirbreads and pies, which are relatively stable throughout the year, are shown in Table 1. Theshops open 360 days a year. It is expected that the demands (breads and pies alike) at theexisting shops will grow by the percentages shown in Table 1 for another three years beforethey become stabilized due to market saturation. For simplicity reason, it can be assumedthat the increase in demand takes effect all of a sudden at the beginning of each year andnow it is the beginning of the current year. At present, the company has one baking plant inMentone which produces both products for the entire metropolitan area of Melbourne. Table 1 — Average daily demand for breads and pies at 0: Bread in current year Glen Melbourne HoppersDaily Waverley Doncaster CBD Thomastown CrossingDemand __ Pies 750Growth In Year 1 | 15% 12%Growth in Year 2 8?? 6%Growth in Year 3 4% 3% The bread production line at the Mentone baking plant has a capacity of 6,000 units per day, an annualized maintenance and overhead cost of $200,000 a year, and a production cost of$0.3 per unit. The pie production line has a capacity of 4,000 units per day, an annualizedmaintenance and overhead cost of $300,000 a year, and a production cost of $0.5 per unit. 1|Page

Q1 –

Depreciation for the year amounted to $180,000: 30% relates to sales, 20% relates to administrative facilities, and the remainder relates to the factory. Of the total units produced during FY 2016: 80% were sold in 2018 and the rest remained in finished good inventory. Use this information to determine the dollar amount of the total depreciation that will be contained in Cost of Goods Sold.  (Round dollar values & enter as whole dollars only.)

Q2 –

Baltimore Manufacturing had a Work in Process balance of $103,000 on January 1, 2018. The year end balance of Work in Process was $51,000 and the Cost of Goods Manufactured was $690,000. Use this information to determine the total manufacturing costs incurred during the fiscal year 2018. (Round dollar values & enter as whole dollars only.)

Q3

Annapolis Clothing Company manufactures quality boating attire. The following selected financial information for the fiscal year 2018 is provided:

Item

Amount

Sales

$200,000

Cost of Goods Manufactured

59,000

Direct Material Purchased

80,000

Factory Overhead

20,000

Work in Process – January 1

60,000

Work in Process – December 31

30,000

Direct Material – December 31

20,000

Finished Goods Inventory – December 31

46,000

Net Income

30,000

Direct Materials used

60,000

Cost of Goods Sold

57,000

Use this information to determine the dollar amount of Annapolis Clothing’s Finished Goods Inventory for January 1, 2018. (Round dollar values & enter as whole dollars only.)