Fremont Troll House Cookies has been baking coconut cookies for $5$ years. They have been selling their cookies for $$5$ each and they are wondering if they are charging the right price.

To help them determine a good price for their product, we must put together and analyze their statements.

Requirements:

We must first classify their common manufacturing costs to have a better understanding of the cost in the business. Use Excel to classify costs as described below.

a$.$ Classify the costs as either period costs or product costs.

i$.$ To classify the cost, click in the cell. Adrop down arrow will appear to the right. Click the arrow and select either Product or Period.

b$.$ Classify the product costs as direct materials, direct labor, or manufacturing overhead. overhead costs, and to use $400$ direct labor hours during fiscal year $2024.$ Troll House Cookies reported the following inventories at May $31,2024$:

Requirements:

$2.$ Compute the Cost of Goods Manufactured by completing the Cost of Goods Manufactured Schedule using the following cost data and account balances:

$3.$ Compute the Cost of Goods sold by completing the Cost of Goods Sold Schedule using the COGM found in part $2$ and the account balances listed above.

$4.$ Compute the predetermined overhead allocation rate for fiscal year $2024.$ Use the blue shaded areas for inputs.

$5.$ Use Excel to journalize the journal entries in the general journal. The account titles are available when you click the down$-$arrow. Use the Increase Indent button on the Home tab to indent items.

$6.$ Adjust the manufacturing overhead account.

a$.$ Prepare the journal entry.

b$.$ Post to T$-$accounts.

c$.$ List the ending balances for Raw Materials Inventory, Work$-$in$-$Process Inventory, Finished Goods Inventory, and Cost of Goods Sold.

$7.$ Compare using a single plant$-$wide allocation rate versus using ABC costing to see how that could effect cookie pricing.

a$.$ Calculate allocation rates for each activity cost pool.

b$.$ Calculate total overhead allocated for each type of coom..

c$.$ Compare the amount of overhead allocated using a single plant$-$wide rate to using ABC costing.

$8.$ Classify costs from $1\_$Costs Classification as variable or fixed.

$9.$ Using the data gathered$/$calculated to this point, find out if Troll House Cookies is making a profit at their current sales price.

a$.$ Use the contribution margin approach to compute the company's monthly breakeven point in units.

b$.$ Use the contribution margin ratio approach to compute the breakeven point in sales dollars.

Instructions

$1\_$Costs Classification

$2\_$COGM

$3\_$COGS

$4\_$MOH Rate

$5\_$Journal Entries

$6\_$MOH adj and End. Bal.

$7\_$ABC Costing

$8\_$Costs Classifications

$9\_$BreakEven

$96\%$