Sonoma State Wine Business Institute

Transcription

1 Sonoma State Wine Business Institute Calculating the True Cost of Your Wine Jeanette Tan QB Winery Solutions Uncork Greater Profits Jeanette Tan Best Practices for Wineries using QuickBooks Financial Planning and Strategies for Wineries Accountant/CFO for 6 years 64% growth in revenue 91% growth in gross profit Consulting CFO Advanced Certified QuickBooks ProAdvisor - Management Club & ecourses 2 Technical Advisors Tyler Willis, CPA Christine Bean, MBA Guest Speaker Book to Tax Adjustment Webinar Sonoma State University School of Business and Economics Hayashi Wayland, Senior Tax Manager Santa Rosa Junior College Adjunct Instructor Cal Poly University Adjunct Lecturer Jackson Family Enterprises, Controller (prev) Price Waterhouse Cooper, Senior Tax Manager, Wine Division (prev) Toni Moheng, CPA Burr Pilger Mayer Nathan Anulo, CPA Brotemarkle Davis Lance Spears, CFO 3 Page 1

2 4 Agenda Identify the costs that are included Learn the difference between direct & indirect costs Use the recommended chart of accounts Review Allocation Math Layout the costing book (part 1) Layout the costing book (part 2) Forecast the true cost Use forms to track details Explain the difference between true cost and tax cost Enter the case goods cost into QB Different Financials for Different Purposes GAAP For: External reporting to investors and lenders Required for companies traded on the stock market & by some lenders Rules: Made by FASB and AICPA (accountants) Basis/Inventory : Accrual/Full Absorption Estate grapes: Valued at cost Depreciation: Straight Line or Declining Balance over useful life Tax For: The IRS to calculate income tax due Rules: made by statue (Congress) Basis/Inventory Wineries under $1 million: Cash/Direct costs Wineries over $1 million, Indirect under $200k: Accrual/UNICAP exception Wineries over $1 million: Accrual/UNICAP Estate grapes: Valued at zero cost (assuming same owners and farming costs are deducted) Depreciation: MACRS using IRS property classifications Sect 179 depreciation is allowed but cost will be excluded from inventory Converted from Book or GAAP Management (Book) For: Internal use so management can make decisions Rules: based on GAAP but CFO can modify where appropriate (GAAP Lite) Basis/Inventory = Accrual/Full Absorption Estate grapes: Recommended valued at market value Depreciation: Straight Line over useful life Costing Model Assumptions Activity based costing method GAAP Lite Accrual basis Estate or related party grapes valued at Market Depreciation is Straight Line over useful life Costing book calculated annually Tax preparer calculates book to tax difference Terms Direct and Indirect are costing terms, not tax terms Discuss the tax ramifications with your tax preparer

3 Winery Costing Overview 1. Two different kinds of inventory Bulk wine = work in process Case goods = finished goods 2. Bulk wine -> QB and Excel General & Administrative Costs Winemaking Costs Direct Costs Indirect Costs 4 Basic Cost Pools Barrel Bottling Allocate Cost Pools based on a unit specific to that cost pool Key Points Direct and Indirect costs accumulate over time Costs stop accumulating when bottled 3. Case Goods -> QB inventory process After bottling, enter the quantity and cost into program 7 Winemaker salary crew wages staff p/taxes staff w/comp staff medical Gases SO2, Additions Fining agents Lab fees Lab supplies Clamps, Hoses R&M Rent & Utilities Seminars, Subscriptions Property tax on cellar equip+ Depreciation on cellar equip+ Winery Cost Pools crew wages Regular crew OT staff p/taxes staff w/comp Yeast, ML culture Nutrients, Enzymes, Gas in fall Rice hulls Dinner for crew Property tax on crush equip* Depreciation on crush equip* Bottling Bottling service Bottling crew Shrink wrap Packing tape Lunch for crew Property tax on bottling equip# Depreciation on bottling equip# Barrel Depreciation on BBL & Racks + Equip Anything not crush or bottling * Equip Press Destemmer Sorting table Tanks 1/2 #Bottling Equip Anything only used at bottling time Cost Pool vs Direct Cost Start Is it directly related to a lot? Yes Is the rate different for any of the wines? Yes Is the cost above X threshold? Yes No No No Cost Pool Direct Cost Supplies SO2 Lab Fees Yeast Gas in fall Bottling Bottling service Labor Custom Fees Filtering Grapes Bottling Glass Labels Closures Capsules

4 Typical P&L versus Winery P&L Ordinary Income/Expense Income 100,000 Cost of Goods Sold 20,000 Gross Profit 80,000 Expense Sales and Marketing 5,000 Tasting Room 8,500 Shipping & Storage 2,500 General & Administration 7,500 Employee Expense 27,500 Travel & Entertainment 1,500 Facilities 12,000 Total Expense 64,500 Net Ordinary Income 15,500 Other Income/Expense Other Income 0 Other Expense 6,500 Total Other Expense -6,500 Net Income 9,000 Ordinary Income/Expense Income 100,000 Cost of Goods Sold 20,000 Gross Profit 80,000 Expense Sales and Marketing 5,000 Tasting Room 8,500 Shipping & Storage 2,500 General & Administration 7,500 Employee Expense 27,500 Travel & Entertainment 1,500 Facilities 12,000 Other Expense 6,500 Total Expense 71,000 Net Ordinary Income 9,000 Other Income/Expense Other Income 0 Other Expense 0 Total Other Expense 0 Net Income 9,000 Ordinary Income/Expense Income 100,000 Cost of Goods Sold 20,000 Gross Profit 80,000 Expense Sales and Marketing 5,000 Tasting Room 8,500 Shipping & Storage 2,500 General & Administration 7,500 Employee Expense 27,500 Travel & Entertainment 1,500 Facilities 12,000 Other Expense 6,500 Total Expense 71,000 Net Ordinary Income 9,000 Other Income/Expense 16,000 10,000 Bottling 16,500 Barrel 1,600 Direct Costs 30,000 Transfer to Bulk Wine -57,600 Transfer to Cased Goods -16,500 Total Other Expense 0 Net Income 9, Recommended Winery P&L versus Common Winery P&L Ordinary Income/Expense Income 100,000 Cost of Goods Sold 20,000 Gross Profit 80,000 Expense Sales and Marketing 5,000 Tasting Room 8,500 Shipping & Storage 2,500 General & Administration 7,500 Employee Expense 27,500 Travel & Entertainment 1,500 Facilities 12,000 Other Expense 6,500 Total Expense 71,000 Net Ordinary Income 9,000 Other Income/Expense 16,000 10,000 Bottling 16,500 Barrel 1,600 Direct Costs 30,000 Transfer to Bulk Wine 0 Transfer to Cased Goods 0 Total Other Expense 74,100 Net Income -65,100 Ordinary Income/Expense Income 100,000 X Cost of Goods Sold Wine COG 20,000 27,600 Bottling 16,500 Grapes 30,000 Transfer to Bulk Wine 0 Transfer to Cased Goods 0 Total Cost of Goods Sold 94,100 Gross Profit 5,900 Expense Sales and Marketing 5,000 Tasting Room 8,500 Shipping & Storage 2,500 General & Administration 7,500 Employee Expense 27,500 Travel & Entertainment 1,500 Facilities 12,000 Other Expense 6,500 Total Expense 71,000 Net Ordinary Income -65,100 Other Income/Expense Other Income 0 Other Expenses 0 Total Other Expense 0 Net Income -65, Chart of Accounts - Winemaking Expenses Other Expense earnings crew P Tax & benefits Lab work Winery repairs and maintenance Wine additions Winery supplies Winery rent and utilities Other winemaking exp Depreciation - Winery Equipment wages & payroll tax crew P Tax & W comp additions Other crush expenses Depreciation- & Production Bottling Costs Glass Closures Lables Other bottling costs Depreciation-Bottling Direct Winemaking Custom crush fees Filtering, dealc Grapes Depreciation Barrels Comments Salaries, Wages, Overtime Payroll tax, Medical, Other benefits, Worker s Comp Consider listing these also under during the fall Supplies that go into the wine (SO2, bentonite, etc) Supplies that are used in the cellar (clamps, flashlights, etc) Includes barrel storage Food for crew, training, trade shows For winery equipment that is not or Bottling Extra crew; OT for hourly FT cellar crew Payroll tax, Worker s Comp, Benefits (if any) Yeast, nutrients, and other additions meals, boots, etc For press, stemmer, etc Direct expense; reusable classed to Bottling Inventory; unusable to Other COG Direct expense; reusable classed to Bottling Inventory; unusable to Other COG Direct expense; reusable classed to Bottling Inventory; unusable to Other COG Indirect expenses; Includes meals bought for crew For any equipment used only for bottling Enter total value of fees, even if final payment is due the following year Determine if this could be included in a cost pool Enter total value of grape bill, even if final payment is due the following year Based on your barrel program (Straight Line, Useful life) Page 4

5 Chart of Accounts - G&A Expenses Expense Shipping & Storage Shipping (retail) Freight Storage (case goods) General & Administration Bank & Finance Charges Liability Insurance Licenses, Fees & Dues Office Supplies Taxes-Excise Comments For DTC wine only. You want to compare this with the shipping revenue Shipping of bulk wine goes with the wine; Shipping of barrels goes with the barrels Must be separated from Shipping Retail. For interest on loans use Other Expense Interest There may be fees for winery There may be supplies for winery This account is for tax paid when wine leaves bond Split with Winemaking Annually Employee Expense Wages & Salaries Officer salary must be allocated Monthly Employer Taxes Monthly Health Insurance Benefits Monthly Worker's Compensation Annually or Monthly Travel & Entertainment There might be mileage for winery Facilities Rent Typically allocated based on Sq Foot Monthly Utilities Calculate a fixed amount for Admin & TR; all the rest to Monthly Property Tax Unsecured tax: Allocate the bill based on the type of equipment Annually Total Facilities Other Expense Amortization Expense Depreciation G&A Interest Expense Only for non-winemaking assets Interest for loans, notes, LOC, and capitalized leases Chart of Accounts - Assets Comments Current Assets Bulk Wine Beginning Bulk Wine Transferred from winemaking Transferred to case goods Case Goods Beginning case goods Transferred from bottling Transferred from bulk wine Release to COG Bottling Material Inventory Merchandise Inventory Reset at the beginning of the year The offset account for :Transfer to Bulk Wine Negative (credit) figure Reset at the beginning of the year The offset account for :Transfer to Case Goods Negative (credit) figure Useable bottling material Goods purchased for resale in the tasting room Fixed Assets Barrels Winery Equipment Accumulated Depreciation Large equipment above the fixed asset threshold and barrels. Include shipping and installation Straight Line, Useful Life for management costing. Negative (credit) figure Direct & Indirect Cost Pools Revisited Winemaking Bottling Direct Indirect Direct Indirect Grapes Direct Indirect Winemaking on site Grapes Direct Barrel Custom Contracts Grapes Direct Barrel Custom Contracts and minimal Barrel Costs Grapes Direct Direct Indirect Label Glass Closure Foil Indirect Bt l Label Glass Closure Foil Indirect Service All wines in the same glass, closure, and foil Label One size bottle, no shiners Different bottle sizes and/or shiners Indirect Negociant Purchasing Bulk Wine Bulk Wine Page 5

6 Activity - Chart of Accounts A: G&A B: Winemaking C:Asset Freight for barrels Freight for case goods to warehouse after bottling Freight for empty glass Gas for marketing trip Gas for truck hauling grapes Gas for truck hauling new chairs for TR Storage of full barrels Storage of case goods Registration for Wine Club manager to Unified Registration for Winemaker to Unified Ladder for the tasting room Ladder for the celler Ladder part of the new cat walk Rent for the cellar Rent for the office Worker's Comp for cellar crew Worker's Comp for vineyard crew establishing a new site Worker's Comp for office staff Repair of fork lift used in the cellar Repair of the office air conditioner Computer for winemaker Computer for office mananger Depreciation for winemaker's computer Depreciation for office manager's computer Meals for crush crew (take out) Meals for sales team (restaurant) Packing tape for bottling line Packing tape for club shipment Fred's wages when working the tasting room Fred's wages when doing punch downs 16 Renewal fee for Wine Spectator subscription Renewal fee for scale licence Activity - Chart of Accounts A: G&A B: Winemaking C:Asset ** ANSWERS ** C A B Freight for barrels Freight for case goods to warehouse after bottling Freight for glass to be used for bottling A B C Gas for marketing trip Gas for truck hauling grapes Gas for truck hauling new chairs for TR B A Storage of full barrels Storage of case goods A B Registration for Wine Club manager to Unified Registration for Winemaker to Unified A B C Ladder for the tasting room Ladder for the celler Ladder part of the new cat walk in the cellar B A Rent for the cellar Rent for the office B C A Worker's Comp for cellar crew Worker's Comp for vineyard crew establishing a new site Worker's Comp for office staff B A Repair of fork lift used in the cellar Repair of the office air conditioner C C Computer for winemaker Computer for office mananger B A Depreciation for winemaker's computer Depreciation for office manager's computer B A Meals for crush crew (take out) Meals for sales team (restaurant) B A Packing tape bottling line Packing tape for club shipment A B Fred's wages when working the tasting room Fred's wages when doing punch downs 17 A B Renewal fee for Wine Spectator subscription Renewal fee for scale licence RECAP Identify the costs that are included True cost includes wages, payroll taxes, benefits, cellar rent & utilities, and equipment & barrel depreciation Learn the difference between direct & indirect costs Most winemaking costs are indirect Most bottling costs are direct Use the recommended chart of accounts Repurpose the Other Expense section Identify your direct & indirect costs Your winery s processes and detail expectation will dictate which costs are direct and indirect 18 Page 6

7 Allocation Math 101 Bob Ted Carol Alice Total # people 10 # Bob s family 4 Total to Divy Up Total # people 10 Total # people 10 Check Tip Total to Divy Up 500 x x x x Total to Divy Up = = 500 # Bob s family 4 = 0.4 = 40% 40% x 500 Bob s share 200 = Bob s share = 200 = 200 NAME PEOPLE Units % SHARE Allocation Bob 4 40% $200 Ted 3 30% $150 Carol 2 20% $100 Alice 1 10% $50 Total % $500 Page 7

8 Arrive at Bar Bob Ted Carol Alice Hours Check $50 $10 Tip 4:00 5:00 5: HOURS 6.5 = 46% 3:00 Total to $60 Divy Up x = 3 % $60 46% Ted Carol % 15% $18 $9 Alice 0.5 8% $5 Total % $60 NAME 3 Bob Hours in Bar Arrive at Bar Bob 3: Ted 4:00 Carol 5:00 Alice 5:30 People x 3 x 2 x 2 x 1 Bar People = 9 = 4 = 2 = SHARE $28 $28 Check $200 $40 Tip Bar Cost Pool $240 NAME HOURS PEOPLE BAR PEOPLE % SHARE Bob % $139 Ted % $62 Carol % $31 Alice % $ % $240 Total Months in 2014 Cab 8 x Rose 2 x x Cab 3 x 1, Rose = = = = 4,720 1,500 2,655 3,600 Cost Pool $16,000 12,475 NAME Months % Allocation 14 Cab ,720 38% $6, Rose ,500 12% $1, Cab ,655 21% $3, Rose 3 1,200 3,600 29% $4,617 3,425 12, % $16,000 Total Page 8

9 2011 Cab 2011 Rose 2012 Cab Months in Barrel 8 x 0 x 3 x 2012 Rose x 1,200 0 Barrel = 4,720 = 0 = 2,655 = 0 Barrel Cost Pool $1,600 7,375 NAME Months Barrel % Barrel Allocation 11 Cab ,720 64% $1, Rose % $0 12 Cab ,655 36% $ Rose 0 1, % $0 3,425 7, % $1,600 Total 2011 Cab 2011 Rose 2012 Cab 2012 Rose = 885 1,200 = 1,200 2,085 Cost Pool $10,000 NAME % Allocation 11 Cab % $0 11 Rose % $0 12 Cab % $4, Rose 1,200 1,200 58% $5,755 2, % $10,000 Total Cases 2011 Cab 2011 Rose 2012 Cab 2012 Rose , > -> Bottling Cost Pool $2, NAME Cases % Bottling Allocation 11 Cab % $1, Rose % $1, Cab % $0 12 Rose % $ % $2,500 Total Page 9

10 Activity - Allocation Math Cost Pool Allocation Allocation Name Months % 12 Chard ,832 43% 12 Sauv Blanc ,500 23% 13 Chard % 13 Sauv Blanc ,350 21% TOTAL 6, % 8,500 Barrel Cost Pool Allocation Barrel Barrel Name Months % Allocation 12 Chard , Sauv Blanc Chard Sauv Blanc TOTAL 3, % 800 Cost Pool Allocation Name % Allocation 12 Chard Sauv Blanc Chard Sauv Blanc 450 TOTAL 100% 3,500 Bottling Cost Pool Allocation Name % Bottling Allocation Cases 12 Chard Sauv Blanc Chard Sauv Blanc TOTAL 100% 1,500 Activity - Allocation Math Cost Pool Allocation Allocation Name Months % 12 Chard ,832 43% 3, Sauv Blanc ,500 23% 1, Chard % 1, Sauv Blanc ,350 21% 1,785 TOTAL 6, % 8,500 Barrel Cost Pool Allocation Barrel Barrel Allocation Name Months % 12 Chard ,832 76% Sauv Blanc % 0 13 Chard % Sauv Blanc % 0 TOTAL 3, % 800 Cost Pool Allocation Name % Allocation 12 Chard % 0 12 Sauv Blanc % 0 13 Chard % 1, Sauv Blanc % 2,100 TOTAL % 3,500 Bottling Cost Pool Allocation Name Cases % Bottling Allocation 12 Chard % Sauv Blanc % Chard % 0 13 Sauv Blanc % 0 TOTAL % 1,500 RECAP Review basic math for the allocation Same math used for splitting a check Each cost pool has a unique unit based on Quantity X Time Some bulk lots may not get an allocation of a cost pool Page 10

11 Total Bulk Cost 07 Cabernet 0 29, ,396 79% 181, ,396 79% 63,101 29,799 79% 197,500 1,067,786 1,510, Cab Franc 0 2, ,790 6% 13, ,790 6% 4,793 2,263 6% 15,000 81, , Petite Verdot 0 2, ,790 6% 13, ,790 6% 4,793 2,263 6% 15,000 94, , Merlot 0 3, ,053 8% 18, ,053 8% 6,390 3,018 8% 20,000 68, , Malbec ,132 1% 2, ,132 1% % 2,500 12,573 18, Total 0 37, , % 230, , % 79,875 37, % 250,000 1,324,281 1,884,156 1,884,156 Cost/ Gal Opus Too (Year One) - Bulk Wine Calculation Barrels Beg Gal End Gal Beg Cost Months % Allocation Months Barrel % Allocation % Allocation Grapes From P&L Total Costs 230,000 Total Barrel Costs 79,875 Total Costs 250,000 Total Grape Costs 1,324,281 Total Bulk Wine on Balance Sheet Page 11

12 Page 12

13 Total Ending Bulk Cost 07 Cabernet 29,799 29,203 1,510, ,584 69% 619, ,584 69% 252, % 0 0 2,382, Cab Franc 2,263 2, , ,158 5% 47, ,158 5% 19, % , Petite Verdot 2,263 2, , ,158 5% 47, ,158 5% 19, % , Merlot 3,018 2, , ,211 7% 62, ,211 7% 25, % , Malbec , ,526 1% 7, ,526 1% 3, % , Cabernet 0 19, ,348 11% 99, ,348 11% 40,486 19,116 86% 172, ,635 1,076, Cab Franc % 1, % % 2,000 8,335 11, Petite Verdot 0 1, ,335 1% 9, ,335 1% 3,766 1,778 8% 16,000 82, , Merlot ,667 1% 4, ,667 1% 1, % 8,000 20,746 35, Malbec % 1, % % 2,000 8,150 11, Total 37,720 59,193 1,884, , % 900, , % 366,625 22, % 200, ,850 4,235,631 Total Costs 200,000 Total Grape Costs 884,850 4,235,631 Cost/ Gal Opus Too (Year Two) - Bulk Wine Calculation Barrels Beg Gal End Gal Beg Cost Months % Allocation Months Barrel % Allocation % Allocation Grapes From P&L Total Costs 900,000 Total Barrel Costs 366,625 Total Bulk Wine on Balance Sheet Page 13

14 Page 14

15 07 Cabernet 29,203-29, ,382, ,608 19% 182, ,608 19% 92, % 0 0-2,656, Cab Franc 2,218-2, , ,654 1% 13, ,654 1% 6, % , Petite Verdot 2,218-2, , ,654 1% 13, ,654 1% 6, % , Merlot 2,957-2, , ,872 2% 18, ,872 2% 9, % , Malbec , ,109 0% 2, ,109 0% 1, % , Total 59,193-36,965 52,094 4,235, , % 974, , % 492,375 30, % 200,900 1,213,434-3,335,217 3,781,223 Opus Too (Year Three) - Bulk Wine Calculation Beg Gal Remove End Gal Beg Cost Months Barrels Cost per Gal % Allocation Months Barrel % Allocation % Allocation Grapes To Bottling Total Ending Bulk Cost Year 3 Year 2 Year 1 08 Cabernet 19,116 18,734 1,076, ,390 49% 476, ,390 49% 241, % 0 0 1,794, Cab Franc , ,667 1% 5, ,667 1% 2, % , Petite Verdot 1,778 1, , ,339 5% 44, ,339 5% 22, % , Merlot , ,669 2% 22, ,669 2% 11, % , Malbec , ,667 1% 5, ,667 1% 2, % , Cabernet 0 24, ,655 16% 153, ,655 16% 77,398 24,552 81% 162, ,063 1,375, Cab Franc 0 2, ,184 2% 17, ,184 2% 8,600 2,728 9% 18, , , Petite Verdot 0 1, ,456 1% 11, ,456 1% 5,733 1,819 6% 12,054 84, , Merlot ,728 1% 5, ,728 1% 2, % 6,027 21,217 35, Malbec % 1, % % 2,009 11,619 16, From P&L Total Costs 974,100 Total Barrel Costs 492,375 Total Costs 200,900 Total Grape Costs 1,213,434 Total Bulk Wine on Balance Sheet 3,781,223 Page 15

16 Page 16

17 Opus Too - Year 3 - Bulk Wine Calculation Comparison of Cost per Gal after Each Year in Cost per Gal After 3rd year in cellar After 2nd year in cellar After 1st year in cellar 07 Cabernet Cab Franc Petite Verdot Merlot Malbec Cabernet Cab Franc Petite Verdot Merlot Malbec Cabernet 56 Page Cab Franc Petite Verdot Merlot Malbec 54

18 Page 18

19 Opus Too Bottling Calculation Cases Gal from Bulk Gal for bottling Cost from Bulk Glass Labels Cork Foil Total Direct % Indirect Total Indirect Total Bottling Cost Total (bulk + bottling) Cost per Case Bottling cost per case Bulk cost per case 07 Opus Too 12,425 36,965 29,572 3,335, ,400 35,550 98,750 51, , % 54, ,550 3,701, Total Indirect Bottling Cost from P&L 54, ,550 Left over for bulk market sale 7,393 Page 19

20 Page 20

21 Total 0 24, , % 125,000 73, % 40,000 24, % 100, ,600 1,037,600 Total Bulk Cost Cost/ Gal Koster Towne (Year One) - Bulk Wine Calculation Barrels Beg Gal End Gal Beg Cost Months % Allocation Months Barrel % Allocation % Allocation Grapes 07 PN 0 8, ,560 35% 43, ,560 35% 13,922 8,520 35% 34, , , Frontierland 07 PN Mickey 0 4, ,760 20% 25, ,760 20% 8,039 4,920 20% 20, , , PN Minnie 0 4, ,320 18% 22, ,320 18% 7,255 4,440 18% 18, , , PN Donald 0 3, ,160 15% 18, ,160 15% 6,078 3,720 15% 15, , , PN Goofy 0 2, ,640 12% 14, ,640 12% 4,706 2,880 12% 11, , , From P&L Total Costs 125,000 Total Barrel Costs 40,000 Total Costs 100,000 Total Grape Costs 772,600 Total Bulk Wine on Balance Sheet 1,037,600 Page 21

22 Page 22

23 07 PN Frontierland 8,520 2,400 6, , ,240 28% 177, ,240 28% 53,960 0% -109, , PN Mickey 4,920 4, , ,040 16% 102, ,040 16% 31,160 0% 33, , PN Minnie 4,440 4, , ,280 15% 92, ,280 15% 28,120 0% 30, , Donald 3,720 3, , ,640 12% 77, ,640 12% 23,560 0% 25, , PN Goofy 2,880 2, , ,560 10% 60, ,560 10% 18,240 0% 19, , PN Frontierland 0 7, ,040 6% 40, ,040 6% 12,160 7,680 35% 32, , , PN Mickey 0 4, ,320 4% 23, ,320 4% 7,030 4,440 20% 18, , , PN Minnie 0 3, ,880 3% 20, ,880 3% 6,270 3,960 18% 16, , , Donald 0 3, ,080 3% 17, ,080 3% 5,320 3,360 15% 14, , , PN Goofy 0 2, ,920 2% 13, ,920 2% 4,180 2,640 12% 11, , , Total 24,480 2,400 44,160 1,037, , % 625, , % 190,000 22, % 92, , ,641,900 Total Bulk Cost Cost/ Gal Koster Towne (Year Two) - Bulk Wine Calculation Barrels Beg Gal Topping End Gal Beg Cost Months % Allocation Months Barrel % Allocation % Allocation Grapes Topping From P&L Total Costs 625,000 Total Barrel Costs 190,000 Total Costs 92,000 Total Grape Costs 697,300 Total Bulk Wine on Balance Sheet 2,641,900 Page 23

24 Page 24

25 07 PN Frontierland 6,120 6, , ,240 3% 21, ,240 3% 6, , PN Mickey 4,920 4, , ,840 3% 17, ,840 3% 5, , PN Minnie 4, , , ,880 2% 15, ,880 2% 4,680-4, , Donald 3, , , ,440 2% 13, ,440 2% 3,921-10, , PN Goofy 2, , , ,760 2% 10, ,760 2% 3,035-5, , Four Barrel ,459-20, PN Frontierland 7,680 7, , ,474 23% 155, ,474 23% 46, , PN Mickey 4,440 4, , ,149 13% 89, ,149 13% 26, , PN Minnie 3,960 3, , ,619 12% 79, ,619 12% 24, , Donald 3,360 3, , ,707 10% 67, ,707 10% 20, , PN Goofy 2,640 2, , ,413 8% 53, ,413 8% 16, , PN Frontierland 0 9, ,440 7% 49, ,440 7% 14,987 9,480 35% 39, , , PN Mickey 0 5, ,200 4% 28, ,200 4% 8,537 5,400 20% 22, , , PN Minnie 0 4, ,400 4% 25, ,400 4% 7,589 4,800 18% 19, , , Donald 0 4, ,240 3% 21, ,240 3% 6,450 4,080 15% 16, , , PN Goofy 0 3, ,720 3% 17, ,720 3% 5,122 3,240 12% 13, , , Total 44, ,080 48,197 2,641, , % 665, , % 200,000 27, % 112, , ,803,289 2,667,611 Total Bulk Cost Cost/ Gal Koster Towne (Year Three) - Bulk Wine Calculation Barrels Beg Blend Remove Ending Beg Months % Allocation Month s Barrel % Allocation % Allocation Grapes Blend To Bottling From P&L Total Costs 665,000 Total Barrel Costs 200,000 Total Costs 112,000 Total Grape Costs 852,000 Total Bulk Wine on Balance Sheet 2,667,611 Page 25

26 Page 26

27 07 PN Frontierland 2,444 6,120 5, ,311 19,552 4,474 16,130 8,798 48,955 28% 14,374 63, ,640 $212 $20 $ PN Mickey 1,965 4,920 4, ,834 15,720 3,612 12,969 7,074 39,375 22% 11,557 50, ,766 $229 $20 $ PN Minnie 1,749 4,381 4, ,791 13,992 3,223 11,543 6,296 35,055 20% 10,287 45, ,133 $231 $20 $ Donald 1,438 3,602 3, ,004 11,504 2,663 9,491 5,177 28,835 16% 8,457 37, ,296 $244 $20 $ PN Goofy 1,127 2,821 2, ,891 9,016 2,104 7,438 4,057 22,615 13% 6,628 29, ,134 $254 $20 $ Four Barrel , ,955 1% 553 2,508 22,967 $244 $21 $218 8,817 22,080 20,976 1,803,289 70,536 16,321 58,192 31, , % 51, ,646 2,031,935 Cost per Case Bottling cost per case Bulk cost per case Koster Towne Bottling Calculation Cases Gal from Bulk Gal for bottling Cost from Bulk Glass Labels Cork Foil Total Direct % Indirect Allocate Indirect Total Bottling Cost Total (bulk + bottling) Total Indirect Bottling Cost 51, ,646 Page 27

28 Page 28

29 07 Cabernet (res) ,766-26, Zin 3 (res) ,625-21, Pinot (res) ,857-33, Total 17, ,750 14, , , ,361 Morekoko Winery Bulk Wine Calculation (Blending) Beg Gal Topping Blend 1 Blend 2 Remove End Gal Beg Cost Topping Blend 1 Blend 2 Bottling Total Bulk Cost Cost/Gal 08 Cabernet (res) ,075 1,753 32, Cabernet 2, , ,395-24,836-97, Malbec 1, , ,888-11,231-42, Merlot 1, , ,835-10,518-1,753-50, Chardonnay 2,880-2, , , Sauvignon 1,200-1, ,007-28, Blanc 08 Pinot (res) ,764 26, Pinot 2,095-2, , , Syrah ,069-13, Zin ,833 2,869-24, Zn ,496 2,510-22, Zin 3 (res) ,888 2,510 26, Zin 4 1,062-1, ,459 5,380-49, Meritage 1,200-1, ,585-46, Page Cabernet 0 3, , Malbec 0 1, , Merlot 0 1, , Chardonnay 0 2, , Sauvignon 0 1, , Blanc 09 Syrah , Pinot 0 0 1, , Zin , Zn , Zin , Zin ,964 28

30 Page 30

31 Total 557, , % 225, , % 52,500 12, % 45, ,378 Morekoko Winery Bulk Wine Calculation A Barrels Beg Cost Mon % Allocation Mon Barrel % Allocation % Allocation Grapes 07 Cabernet (res) 24, % 1, % Zin 3 (res) 20, % 1, % Pinot (res) 31, % 1, % Cabernet (res) 17, ,646 5% 11, ,646 5% 2, Cabernet 79, ,702 15% 34, ,702 17% 8, Malbec 32, ,520 7% 16, ,520 8% 4, Merlot 36, ,400 9% 20, ,400 10% 5, Chardonnay 114, ,760 4% 8, ,880 2% 1, Sauvignon Blanc 25, ,400 2% 3, % 0 08 Pinot (res) 16, ,098 3% 7, ,098 4% 1, Pinot 82, ,762 11% 24, ,762 12% 6, Syrah 7, ,398 2% 4, ,398 2% 1, Zin 1 13, ,531 3% 6, ,531 3% 1, Zn 2 12, ,965 3% 5, ,965 3% 1, Zin 3 (res) 12, ,947 4% 8, ,947 4% 2, Zin 4 28, ,496 5% 12, ,496 6% 3, Meritage Page Cabernet 0 3 9,000 6% 13, ,000 6% 3,313 3,000 24% 10,702 57, Malbec 0 3 3,600 2% 5, ,600 3% 1,325 1,200 9% 4,281 18, Merlot 0 3 4,500 3% 6, ,500 3% 1,657 1,500 12% 5,351 18, Chardonnay 0 3 7,200 5% 10, ,600 3% 1,325 2,400 19% 8,561 80, Sauvignon Blanc 0 3 3,000 2% 4, % 0 1,000 8% 3,567 14, Syrah 0 3 1,416 1% 2, ,416 1% % 1,684 4, Pinot 0 3 3,000 2% 4, ,000 2% 1,104 1,000 8% 3,567 32, Zin ,416 1% 2, ,416 1% % 1,684 7, Zn ,239 1% 1, ,239 1% % 1,473 7, Zin ,239 1% 1, ,239 1% % 1,473 7, Zin ,655 2% 3, ,655 2% % 3,157 16,963

32 Page 32

33 Beg Cost Allocation Allocation Allocation Grapes Topping Blend 1 Blend 2 Bottling Total Bulk Cost Cost/Gal 07 Cabernet (res) 24,766 1, , Zin 3 (res) 20,625 1, , Pinot (res) 31,857 1, , Cabernet (res) 17,075 11,136 2,815 1,753 32, Cabernet 79,395 34,521 8,726-24,836-97, Malbec 32,888 16,778 4,241-11,231-42, Merlot 36,835 20,973 5,301-10,518-1,753-50, Chardonnay 114,425 8,389 1, , Sauvignon Blanc 25,007 3, , Pinot (res) 16,764 7,424 1,877 26, Pinot 82,684 24,412 6, , Syrah 7,069 4,950 1,251-13, Zin 1 13,833 6,599 1,668 2,869-24, Zn 2 12,496 5,774 1,460 2,510-22, Zin 3 (res) 12,888 8,662 2,189 2,510 26, Zin 4 28,459 12,374 3,128 5,380-49, Meritage 46,585-46, Total 557, ,000 52,500 45, , , ,361 Morekoko Winery Bulk Wine Calculation B Barrel Page Cabernet 0 13,108 3,313 10,702 57,500 84, Malbec 0 5,243 1,325 4,281 18,000 28, Merlot 0 6,554 1,657 5,351 18,750 32, Chardonnay 0 10,486 1,325 8,561 80, , Sauvignon Blanc 0 4, ,567 14,000 21, Syrah 0 2, ,684 4,000 8, Pinot 0 4,369 1,104 3,567 32,500 41, Zin 1 0 2, ,684 7,867 12, Zn 2 0 1, ,473 7,228 10, Zin 3 0 1, ,473 7,572 11, Zin 4 0 3, ,157 16,963 24,964 28

34 Page 34

35 TOTAL 2,236 5,378 5, ,362 19,296 12,206 9,763 5,645 46, % 10,250 57, ,519 TOTAL 4,317 10,372 10, ,723 34,536 12,951 15,541 14,030 77, % 21,375 98, ,158 Grand Total 6,553 15,750 15, ,085 53,832 25,157 25,304 19, ,968 31, , ,677 Cost per Case Bottling cost per case Bulk cost per case Morekoko Winery - Bottling Calculation Cases Gal from Bulk Gal for bottling Cost from Bulk Glass Labels Closure Foil Total Direct % Indirect Allocate Indirect Total Bottling Cost Total (bulk + bottling) Spring Bottling 07 Cabernet (res) ,489 2,352 2,587 1, ,340 9% 898 8,238 34,727 $177 $37 $ Zin (res) ,917 1,764 1,940 1, ,505 7% 674 6,179 28,096 $191 $37 $ Pinot (res) ,580 2,352 2,587 1, ,340 9% 898 8,238 41,818 $213 $37 $ Chardonnay 1,198 2,880 2, ,874 9,584 3,594 4,313 3,894 21,384 54% 5,491 26, ,749 $126 $18 $ Sauvignon Blanc 499 1,200 1,188 28,503 3,244 1, ,339 22% 2,287 7,626 36,129 $72 $11 $57 Summer Bottling 08 Cabernet 983 2,363 2,339 97,806 7,864 2,949 3,539 3,195 17,547 23% 4,867 22, ,219 $122 $18 $99 08 Malbec 475 1,140 1,129 42,677 3,800 1,425 1,710 1,544 8,479 11% 2,352 10,831 53,508 $113 $18 $90 08 Merlot 604 1,450 1,436 50,838 4,832 1,812 2,174 1,963 10,781 14% 2,991 13,772 64,610 $107 $18 $84 08 Pinot 872 2,095 2, ,267 6,976 2,616 3,139 2,834 15,565 20% 4,318 19, ,150 $153 $18 $ Zin ,970 1, ,213 5% 1,169 5,382 30,351 $129 $18 $ Zn ,240 1, ,677 5% 1,020 4,697 26,937 $131 $18 $ Zin ,062 1,051 49,340 3,536 1,326 1,591 1,437 7,890 10% 2,188 10,078 59,418 $134 $18 $ Meritage 499 1,200 1,188 46,585 3,992 1,497 1,796 1,622 8,907 12% 2,471 11,378 57,964 $116 $18 $93 Page 35 Total Indirect Bottling Cost Spring 10,250 Total Indirect Bottling Cost Summer 21,375

36 Page 36

37 118 Acme Wine Label Company INVOICE 1234 Anystreet Drive Anycity, ST, (555) SOLD TO: Morekoko Winery INVOICE NUMBER Sonoma County INVOICE DATE March 16, 2017 TERMS Net 30 QUANTITY DESCRIPTION UNIT PRICE AMOUNT 2, x 4", Semi Gloss, F/B, 2008 Chardonnay 0.50 $1, , x 4", Semi Gloss, F/B, 2008 Sauv Blanc 0.50 $1, Setup Charge $ Chardonnay $1, $ $ $1, Sauv Blanc $1, $ $ $1, SUBTOTAL $2, TAX FREIGHT $ $3, PAY THIS AMOUNT THANK YOU FOR YOUR BUSINESS! 2013 BULK WINE BOOK Activity - Bulk and Bottling Books Name Gal Beg Cost Months Allocation Months Barrel Barrel Allocations Allocation Grapes Subtotal To Bottling Ending Cost End Gal Cost/ Gal 12 Chard , , Sauv Blanc , Chard Sauv Blanc 3 1, TOTAL 854 6,567 8,500 3, , costgallon/month Barrel cost gallon/month cost/gallon 2013 BOTTLING BOOK Name Cases From Bulk Sheet Glass Closure Foil Label Total Direct Bottling Allocation Total Bottling Total Bulk + Bottling Cost/ Case Package Bottling Bulk Cost/Case Cost/Case Cost/Case 12 Chard Sauv Blanc Chard 13 Sauv Blanc TOTAL 353 1,500 NOTES 2012 BULK WINE BOOK Name End Gal End Cost 12 Chard 354 7, Sauv Blanc 500 7,875 Indirect bottling cost/case 1.9 tons of Chardonnay grapes for $2,000/ton 2.9 tons of Sauv Blanc grapes for $1,000/ton Chardonnay glass bill $850 Sauv Blanc glass bill $900 Chardonnay cork bill $250 Sauv Blanc screw cap bill $425 Chardonnay foil bill $ BULK WINE BOOK Activity - Bulk and Bottling Books ** ANSWERS ** Name Gal Beg Cost Months Allocation Months Barrel Barrel Allocations Allocation Grapes Subtotal To Bottling Ending Cost End Gal Cost/ Gal 12 Chard 354 7, ,832 3, , ,228-12, Sauv Blanc 500 7, ,500 1, ,830-9, Chard , ,400 3,800 6,497 6, Sauv Blanc 3 1,350 1, ,100 2,900 6,785 6, TOTAL ,840 6,567 8,500 3, ,500 6,700 35,340-22,058 13, costgallon/month 1.29 Barrel cost gallon/month 0.22 cost/gallon BOTTLING BOOK Name Cases From Bulk Sheet Glass Closure Foil Label Total Direct Bottling Allocation Total Bottling Total Bulk + Bottling Cost/ Case Package Bottling Bulk Cost/Case Cost/Case Cost/Case 12 Chard , ,334 2, ,424 15, Sauv Blanc 208 9, ,914 3, ,124 13, Chard 13 Sauv Blanc TOTAL ,058 1, ,248 6,048 1,500 7,548 29,606 NOTES 2012 BULK WINE BOOK Name End Gal End Cost 12 Chard 354 7, Sauv Blanc 500 7,875 Indirect bottling cost/case 1.9 tons of Chardonnay grapes for $2,000/ton 2.9 tons of Sauv Blanc grapes for $1,000/ton Chardonnay glass bill $850 Sauv Blanc glass bill $900 Chardonnay cork bill $250 Sauv Blanc screw cap bill $425 Chardonnay foil bill $ Page 37

38 Page 38

39 Barrels 07 Bulk (res) 1,298 1,284 1, ,248 77, ,568 2% 4,739-81, Bulk (2 month) 16,485 4,039 4, , , ,078 5% 14, , Bulk (8 month) , , ,152 55% 151, , Bulk (res) 1,608 1,608 1,608 48, ,296 13% 35,612 84, Bulk 12,755 12,755 12, ,265 25% 70,621 12, % 45, , , Total 17, ,363 29,955 14, , , , % 277, % 0 12, % 45, , , ,588 Total Bulk Cost Cost/Gal Steffie's Farm & Vineyard Bulk Wine Calculation Beg Gal Bottled Gal Ending Net Gal End Gal Beg Cost Adj Beg Cost Mon % Allocation Mon Barrel % Allocation % Allocation Grapes Bottling From P&L Total Costs 277,500 Total Barrel Costs Total Harvest Costs 45,500 Total Bulk Cost Pools Page 39

40 Page 40

41 Cost per Case Bottling cost per case Bulk cost per case Steffie's Farm & Vineyard - Bottling Calculation Cases Bottled Gal Cost from bulk Allocated Bulk % Packaging Total Packaging % Indirect Allocate Indirect Total Bottling Cost Total (bulk + bottling) 2007 Bulk 07 Cabernet (res) ,987 29,814 3% 3,708 3% 946 4,654 34,468 $176 $19 $ Zin (res) ,360 2% 2,781 2% 709 3,490 25,850 $176 $19 $ Pinot (res) ,814 3% 3,708 3% 946 4,654 34,468 $176 $19 $152 SUB TOTAL 539 1,283 81,987 81, Bulk 08 Chardonnay 1,198 2, ,672 96,484 18% 22,664 18% 5,780 28, ,928 $104 $19 $81 08 Sauvignon 499 1,188 40,188 8% 9,440 8% 2,408 11,848 52,036 $104 $19 $81 Blanc SUB TOTAL 1,697 4, , , Cabernet 983 2, , ,017 15% 18,596 15% 4,744 23, ,357 $131 $19 $ Malbec 475 1,131 50,746 7% 8,986 7% 2,292 11,278 62,024 $131 $19 $ Merlot 604 1,438 64,527 9% 11,426 9% 2,915 14,341 78,869 $131 $19 $ Pinot 872 2,075 93,158 13% 16,496 13% 4,208 20, ,863 $131 $19 $ Zin ,213 4% 4,465 4% 1,139 5,604 30,816 $131 $19 $ Zn ,008 3% 3,897 3% 994 4,891 26,899 $131 $19 $ Zin ,052 47,220 7% 8,362 7% 2,133 10,495 57,715 $131 $19 $ Meritage 499 1,188 53,310 8% 9,440 8% 2,408 11,848 65,158 $131 $19 $107 SUB TOTAL 4,317 10, , ,543 Grand Total 6,553 15, , , % 123, % 31, , ,449 Page 41 Cost Pools 123,969 31, ,592

42 Page 42

43 Vineyard Designated Wine Regional Designated Wine Vineyard and Regional Designated Wine Reserve Program 1 Reserve Program 2 8 Months 15 Months Page 43

44 Opus Too White Rock White Rock - Bulk Lots Page 44

45 Donkey and Goat Donkey and Goat - Bulk Lots Steffie s Winery - Bulk Lot Page 45

46 Winemaker Lot Names vs Costing Book Bulk Lot Names - Version 1 Barrel Log Lot Name Gal # BBL Vineyard Alc PH ID Lot Bulk Lot Name Snz Hungarian Sneezy 16 PN Sneezy PN PN Hap neutral Happy 16 PH Happy PN Hap La Tache Happy 16 PH Happy PN Grp Grumpy 16 PN Grumpy PN Doc Doc 16 PN Doc Bulk Lot Gal PN Snz Bordeaux Sneezy 16 PN Sneezy PN Snz American Sneezy 16 PN Sneezy PN Bash Experiment Bashful 16 PN Bashful PN Bash Experiment Bashful 16 PN Bashful PN Snz Transelvanian Sneezy 16 PN Sneezy PN Dop Pommard Dopey 16 PN Dopey PN Slp ABC Sleepy 16 PN Sleepy PN Slp XYZ 59 1 Sleepy 16 PN Sleepy PN Snz Late Sneezy 16 PN Sneezy PN Grp Misc 59 1 Grumpy 16 PN Grumpy 16 PN Dopey PN Bashful PN Happy PN Doc PN Grumpy PN Sleepy PN Sneezy 1,003 Total 2, PN Snz Late Sneezy 16 PN Sneezy TOTAL Winemaker Lot Names vs Costing Book Bulk Lot Names - Version 2 Barrel Log Lot Name Gal # BBL Vineyard Alc PH ID Lot Bulk Lot Name Snz Hungarian Sneezy 16 PN S Coast PN PN Hap neutral Happy 16 PH RRV PN Hap La Tache Happy 16 PH RRV PN Grp Grumpy 16 PN S Coast PN Doc Doc 16 PH RRV Bulk Lot Gal PN Snz Bordeaux Sneezy 16 PN S Coast PN Snz American Sneezy 16 PN S Coast PN Bash Experiment Bashful 16 PH RRV PN Bash Experiment Bashful 16 PH RRV 16 PN Green Valley PN RRV PN S Coast 1, PN Snz Transelvanian Sneezy 16 PN S Coast PN Dop Pommard Dopey 16 PN Green Valley PN Slp ABC Sleepy 16 PN S Coast PN Slp XYZ 59 1 Sleepy 16 PN S Coast PN Snz Late Sneezy 16 PN S Coast PN Grp Misc 59 1 Grumpy 16 PN S Coast Total 2, PN Snz Late Sneezy 16 PN S Coast TOTAL Winemaker Lot Names vs Costing Book Bulk Lot Names - Version 3 Barrel Log Lot Name Gal # BBL Vineyard Alc PH ID Lot Bulk Lot Name Snz Hungarian Sneezy 16 PN S Coast PN PN Hap neutral Happy 16 PH RRV PN Hap La Tache Happy 16 PH RRV PN Grp Grumpy 16 PN S Coast PN Doc Doc 16 PH RRV Bulk Lot Gal PN Snz Bordeaux Sneezy 16 PN S Coast PN Snz American Sneezy 16 PN S Coast PN Bash Experiment Bashful 16 PH RRV PN Bash Experiment Bashful 16 PH RRV PN Snz Transelvanian Sneezy 16 PN S Coast PN Dop Pommard Dopey 16 PN Green Valley 16 PN Green Valley PN RRV PN S Coast PN Sneezy PN Slp ABC Sleepy 16 PN S Coast PN Slp XYZ 59 1 Sleepy 16 PN S Coast PN Snz Late Sneezy 16 PN Sneezy PN Grp Misc 59 1 Grumpy 16 PN S Coast Total 2, PN Snz Late Sneezy 16 PN Sneezy TOTAL

47 Other Details Barrels End Gal Beg Cost Direct Costs Bulk Purchase Topping/ Allo Allo Allo Grapes Subtotal Blending Bulk Sale To Bottling Total Ending Bulk Cost 07 Cabernet 0 2,381, ,130 93, ,656, Cab 0 180,879 13,833 7, ,784 0 Franc 07 Petite 0 194,081 13,833 7, , Merlot 0 201,566 18,444 9, , Malbec 0 29,204 2,305 1, , Cabernet 18,734 1,077, , , ,793, Cab ,970 5,545 2, ,294 Franc 08 Petite 1, ,062 44,361 22, ,651 Verdot 08 Merlot ,285 22,181 11, , Malbec ,785 5,545 2, , Cabernet 24, ,122 78, , ,063 1,376, Cab 2, ,014 8,699 18, , ,458 Franc 09 Petite 1, ,342 5,799 12,054 84, ,065 Verdot 09 Merlot ,671 2,900 6,027 21,217 35, Malbec , ,009 11,619 16,485 Total 52,094 4,235, , , ,900 1,213,434-3,335,724 3,780,716 From P&L Total 974,100 Costs Total Barrel 492,375 Costs Total 200,900 Costs Total Grape 1,213,434 Costs Total Bulk Wine on Balance Sheet 3,780,716 Sheets in a Costing Book One Excel workbook for each year Reset the bulk sheet at the start of each year Sheets are linked so that updates to the bulk page will update the juice flow and bottling page Costing Book Triage How much detail is needed? Why? How much cellar information is provided? Map the cellar lots with the costing book lots How much blending is done? Who will be maintaining the costing book? Options Use a manageable number of bulk lots Use one bottling cost pool Use cellar work order and bottling reports Find an excel nerd

48 What Ifs Beg Months Barrels % Allocation Months Barrel % Allocation % Allocation 07 PN Frontierland 6, ,240 3% 21, ,240 3% 6, PN Mickey 4, ,840 3% 17, ,840 3% 5, PN Minnie 4, ,880 2% 15, ,880 2% 4, PN Donald 3, ,440 2% 13, ,440 2% 3, PN Goofy 2, ,760 2% 10, ,760 2% 3, PN Frontierland 7, ,474 23% 155, ,474 23% 46, PN Mickey 4, ,149 13% 89, ,149 13% 26, PN Minnie 3, ,619 12% 79, ,619 12% 24, PN Donald 3, ,707 10% 67, ,707 10% 20, PN Goofy 2, ,413 8% 53, ,413 8% 16, PN Frontierland 9, ,440 7% 49, ,440 7% 14,987 9,480 35% 39, PN Mickey 5, ,200 4% 28, ,200 4% 8,537 5,400 20% 22, PN Minnie 4, ,400 4% 25, ,400 4% 7,589 4,800 18% 19, PN Donald 4, ,240 3% 21, ,240 3% 6,450 4,080 15% 16, PN Goofy 3, ,720 3% 17, ,720 3% 5,122 3,240 12% 13,440 Total 44,160 27, , % 665, , % 200,000 27, % 112,000 Cost per Gallon per Month What If 2010 has the same crush gallons as Barrels Beg Months % Allocation Months Barrel % Allocation % Allocation 08 PN Frontierland 7, ,746 3% 22, ,746 3% 6, PN Mickey 4, ,524 2% 12, ,524 2% 3, PN Minnie 3, ,604 2% 11, ,604 2% 3, PN Donald 3, ,452 1% 9, ,452 1% 2, PN Goofy 2, ,068 1% 7, ,068 1% 2, PN Frontierland 9, ,480 25% 168, ,480 25% 50, PN Mickey 5, ,504 14% 95, ,504 14% 28, PN Minnie 4, ,448 13% 85, ,448 13% 25, PN Donald 3, ,976 11% 72, ,976 11% 21, PN Goofy 3, ,100 9% 57, ,100 9% 17, All Grapes 27, ,000 18% 122, ,000 18% 36,743 27, % 112,000 Total 47,656 27, , % 665, , % 200,000 27, % 112,000 Cost per Gallon per Month Page 48

49 What If 2010 increases the crush gallons 20% Barrels Beg Months % Allocation Months Barrel % Allocation % Allocation 08 PN Frontierland 7, ,746 3% 21, ,746 3% 6, PN Mickey 4, ,524 2% 12, ,524 2% 3, PN Minnie 3, ,604 2% 11, ,604 2% 3, PN Donald 3, ,452 1% 9, ,452 1% 2, PN Goofy 2, ,068 1% 7, ,068 1% 2, PN Frontierland 9, ,480 24% 162, ,480 24% 48, PN Mickey 5, ,504 14% 92, ,504 14% 27, PN Minnie 4, ,448 12% 82, ,448 12% 24, PN Donald 3, ,976 10% 69, ,976 10% 20, PN Goofy 3, ,100 8% 55, ,100 8% 16, All Grapes 32, ,200 21% 141, ,200 21% 42,529 32, % 112,000 Total 47,656 32, , % 665, , % 200,000 32, % 112,000 Cost per Gallon per Month What If 2010 increases the crush gallons 20% and adds Intern Barrels Beg Months % Allocation Months Barrel % Allocation % Allocation 08 PN Frontierland 7, ,746 3% 22, ,746 3% 6, PN Mickey 4, ,524 2% 13, ,524 2% 3, PN Minnie 3, ,604 2% 11, ,604 2% 3, PN Donald 3, ,452 1% 9, ,452 1% 2, PN Goofy 2, ,068 1% 7, ,068 1% 2, PN Frontierland 9, ,480 24% 170, ,480 24% 48, PN Mickey 5, ,504 14% 97, ,504 14% 27, PN Minnie 4, ,448 12% 86, ,448 12% 24, PN Donald 3, ,976 10% 73, ,976 10% 20, PN Goofy 3, ,100 8% 58, ,100 8% 16, All Grapes 32, ,200 21% 148, ,200 21% 42,529 32, % 112,000 Total 47,656 32, , % 700, , % 200,000 32, % 112,000 Cost per Gallon per Month Page 49