Jenna Happy cow farm (JHCF) part 2
· 2000 laying chickens
Nancy’s farm:
· $0.02 an egg
· $0.08 for spices and eggs
Hens begin laying eggs at about 18 weeks of age. Many hens molt at 52 weeks, and are sold as stewing hens at about 110 weeks of age. During the molting period, hens usually don't lay eggs. My inventory of hens lay on average five eggs per week with molting factored in.
· JHCF normally sells 2,000 bottles of eggnog a week during the year except during the holiday seasons.
· The demands increases to approximately 10,000 bottles in the second week of October and it continues until the New Year’s Eve.
Require: keep at least 5% of the next week production needs of eggs available in the storeroom/ keep at least 10% of the next week demands of eggnog at the beginning inventory of every week.
· The demand from regular customers for eggs is very consistent. It is around 400 dozens a week except during summer (June through September) because tourists drive the demand up by 20%.
Require: keep at least 1% of the eggs to hatch for using them to keep my inventory constant.
1. Prepare the weekly budgets for eggs in dozens that are needed to satisfy JHCF’s production needs and desired inventory for 52 weeks starting November 5th, 2020.
2. Prepare the weekly budget to show the amount of shortages (i.e., unsatisfied demand by regular customers) or surpluses of eggs in dozens for the coming 52 weeks starting November 5th, 2020
Klanawa Nature Adventures
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Jenna’s Happy Cows Farm
BUS 217
Comprehensive Assignment Part 2
Winter 2021
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Background
Welcome to the Winter 2021 version of the group assignment prepared specifically for
BUS 217.
Made up of 2 parts, this assignment is meant to fulfill a number of objectives for you.
These include:
1) Test and apply your knowledge of the concepts of managerial accounting.
2) Increase your experience and abilities with respect to report writing.
3) Illustrate scenarios and issues you will face in the “real world.”
4) Provide for an additional method of evaluation of your knowledge and skills
ather than the traditional quizzes and tests.
Please take all parts of this assignment seriously. This is an opportunity to actually apply
your knowledge rather than just memorize a textbook.
Please prepare the assignment using either Word or Excel rather than by hand. The
finished product will look more professional as well as create some consistency between
submissions.
All submissions must be on 8 1/2 by 11 inch paper using a size 12 font. Grammar and
spelling are very important and marks will be deducted for poor grammar and spelling.
For the memos, please use a memo format. Examples of this can be found in Word. Write
in a form that is understandable and answers the client's question.
In order to make this assignment easier and your result more successful we suggest that
you do not leave this assignment to the last day or even week. The assignment parts are
constructed to coincide with the topics that have been or will be covered in class. If you
egin working on the assignment immediately then as your lectures/seminars progress
you will be immediately reinforcing the course content that you are being exposed to and
it will make application of that content easier as well.
The 2 parts of the assignment are worth a total of 15% of your final grade and therefore
each part will have a significant effect on your final letter grade (7% for part 1 and 8%
for part 2). Making a submission on time even if incomplete, will be more to your benefit
than giving up and not making any submission at all.
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Important Notes Regarding Student Conduct
While this assignment is a group assignment all submissions are required to be
your own words and calculations. Each member of the group must create their own
work and if found to have plagiarized the entire group will be penalized. You are
not allowed to share/exchange your written answers or computations with
other groups.
Otherwise, you will be reported for cheating. In the event that the responses
prepared by individual students within a group appear to be the same or highly
similar to another groups the instructor will consider refe
ing the students to the
Academic Integrity Committee for consideration.
Plagiarism
• Plagiarism refers to the practice of presenting the words of another author
(it may be a text writer or another student) as your own. This is not
permitted. At times you will be asked to learn about and discuss the views
or theories of others. This should be done with appropriate
acknowledgement of source materials. In other words, you must reference
your work. Acknowledge your sources – both direct and indirect quotes –
within-text citations. Refer to the Learning Commons to make sure you are
eferencing co
ectly.
Academic Conduct Violations
• Any violation of the rules of Academic Conduct as described above will
esult in the immediate confiscation of all related materials of all parties
involved. In addition, all parties will be immediately reported to the
Academic Integrity Committee for consideration of further actions
including (but not limited to) receiving a zero for the submission, a failure
in the course and the possibility of suspension or expulsion.
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Your Role
While you believe you are a student cu
ently taking BUS 217, for the purposes of this
assignment you are doing your internship with the Chartered Professional Accountant
(CPA) firm of Bob Belly (BB). BB specializes in providing accounting and consulting
advice and analysis for Agriculture and Agri-Food businesses. For your first assignment,
BB wants you to work on the new client file, Jenna’s Happy Cows Farm (JHCF). The
owners of JHCF have hired BB to advise them on the cu
ent situation and potential
future developments. BB expects this engagement to include writing memos, performing
quantitative and qualitative analysis as well as providing recommendations for the
owners of JHFC. At all times, work submitted must be professional both in terms of
content as well as presentation. This is not a university but rather the real world. Do the
work as if your job depends on it, because it does!!
Jenna’s Happy Cows Farm (JHCF)
Jenna, 26 years old, was born on a farm, and by 2020 she lived and worked with her
mother, stepfather, and
other on their farm in Courtney. Jenna’s family had a crop farm
of just under 300 hectares, with 90% of the land certified organic. A secondary line of
usiness (up to 25% of total revenues and costs) was a beef cow/calf operation, where
they bought in stocker calves to raise. Another minor line of business (less than 3%),
which was operated by her mother, comprised of raising laying chickens and turkeys in
the summer.
Jenna participated in her family farm by running her own dairy farm that produced milk
for animal consumption and then it grew to become Jenna’s Happy Cows Farm (JHCF)
which produces milk for human consumption in Courtney. There were several
neighboring farms that were successful in this business and she was interested in having
similar success in the future. Jenna believed that the only key success factor in the dairy
farm business was to be able to take care of the herd and milk it in an efficient manner.
The rest of the efforts are the responsibility of the BC Milk Marketing Board (BCMMB).
No sales effort or distribution planning has to be made for the milk produced within the
quota, making it even more attractive for farmers versed in raising cattle. (See Appendix
1 for a summary of the dairy industry in British Columbia)
Jenna’s experience
eeding milking cows was reflected in the growth of her herd since
she acquired her first cow in the year 2003; by 2020 she had a total of 100 heads (80
milking cows and 20 calves). JHCF produces several different products sold in health
food markets and some of the larger supermarkets in the area as well as in the North
Island Country Store, a small retail store located next to the farm. JHCF’s products are
well-known for their quality and have gained a strong
and-loyalty throughout the
egion in which JHCF operates. A key competitive factor for JHCF is that it uses only
glass bottles in the packaging of its products, which appeals to many of its targeted
customers.
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Transcript of a meeting November 5th, attended by Jenna, her mother, her
stepfather, her
other, Bob Belly (CPA from BB), and the Student (You).
Everyone gathered around the kitchen table …
Jenna: Thank you Bob for your comprehensive report. I appreciate your suggestion to allocate
shipping and receiving costs by purchase order rather than ounces. It does make sense. Also,
allocating some of the other facilities costs to our shipping and receiving department was helpful
as well. The thing that I was most surprised to see was that both my chocolate milk and eggnog
were losing so much money, even with the changes you made.
Bob: You may want to think about some pricing changes on both the chocolate milk and the
eggnog. In your attribution importance ranking price ranked lower than in any other product.
You could do a study to see if an increase of 10 cents a bottle for chocolate milk and 30-40 cents
a bottle for eggnog would work out for you.
Jenna: I hate to do that. Is there another way we could make the contribution margin of these
two products better?
Bob: Well, the biggest reason for the lower contribution margin (aside from the cost of sugar,
spices, eggs and cocoa) is the mixing costs. Is there any way you can reduce those costs?
Jenna: I have heard of a new process that does not require a large investment in new equipment