Chapter 1

Using Excel to classify manufacturing costs and to determine the cost of

manufactured products.

Fremont Cookies has been baking coconut cookies for 27 years. Classify manufacturing
costs, and prepare schedules for the Cost of Goods Manufactured and the Cost of
Goods Sold for the month ended March 31, 2024.
Use the blue shaded areas on the ENTER-ANSWERS tab for inputs.
ALWAYS use cell references and formulas where appropriate to receive full credit.
If you copy/paste from the Instruction tab you will be marked wrong. All values
should be added as positive numbers.

Requirements:
1 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. A drop down arrow will appear to the
right. Click the arrow and select either Product or Period.
Classify the product costs as direct materials, direct labor, or manufacturing
b.
overhead.
i. To identify the classification, click in the cell. A drop down arrow will appear to
the right. Click the arrow. If it’s a product cost, select direct materials, direct
labor, or manufacturing overhead. If it’s a period cost, select expense.
2
Complete the Schedule of Cost of Goods Manufactured. Use the blue
shaded areas for inputs. Use the following amounts: direct materials used,
$5,000; direct labor, $5,500; manufacturing overhead, $13,500; beginning
work-in-process inventory, $4,000; and ending work-in-process inventory,
$3,700.

a. Complete the heading Data DM

 To select the correct report caption, click in the cell. A drop down arrow will
b. appear to the right. Click the arrow and select the appropriate caption from the
alphabetical list. Costs 5000
Indent the captions for Direct Materials Used, Direct Labor, and Manufacturing
c. Overhead. Use the Increase Indent button on the Home tab in the Alignment
section. Beg WIP 4000

Complete the amounts to the right. Use the Excel function SUM() to sum
d.
amounts on the schedule.
e. Format the cells requiring dollar signs.
f. Format underlines or double underlines as needed.
g. Boldface the total.

Using the results from Requirement 2, calculate the cost per unit for goods
manufactured assuming 18,500 units were manufactured. Use the blue
shaded areas for inputs. Use a formula to calculate the cost per unit.
3
Complete the Cost of Goods Sold schedule. Beginning Finished Goods had
750 units that had a cost of $1.13 each. Ending Finished Goods Inventory
4 had 950 units left. Data
a. Complete the heading. # of units 18500 1.13
Using the results from Requirement 3, calculate the cost of goods sold
b.
assuming FIFO inventory costing is used. Beg FG 750 950
To select the correct report caption, click in the cell. A drop down arrow will
c. appear to the right. Click the arrow and select the appropriate caption from the
alphabetical list.
Complete the amounts to the right. Use the Excel function SUM to derive the
d.
Cost of Goods Sold.
e. Format the cells requiring dollar signs.
f. Format underlines or double underlines as needed.
g. Boldface the total.
 Assuming Sales for March totaled $41,735 and Selling and Administrative
Expenses totaled $12,150 complete the Income Statement for March 2024.
5 Data
a. Complete the heading. Sales 41735
b. Using the results from Requirement 4, calculate Net Income. S&A Exp 12150
To select the correct report caption, click in the cell. A drop down arrow will
c. appear to the right. Click the arrow and select the appropriate caption from the
alphabetical list.
Complete the amounts to the right. Use the Excel function SUM to derive the
d.
Gross Profit and Net Income.
e. Format the cells requiring dollar signs.
f. Format underlines or double underlines as needed.
g. Boldface the total.

Excel Skills:
1 Enter numbers into cells.
2 Use Excel’s data validation to select cost classifications or report captions.
3 Use Excel function SUM().
4 Select the number format (dollar signs).
5 Select the border (single underline, double underline).
6 Select the boldface font.
Use the Increase Indent button to indent items in the Schedule of Cost of Goods
7 Manufactured.

Saving & Submitting Chapter Excel Assignments

1. Save file.
a. You may want to create folder on desktop, and label COMPLETED EXCEL PROJECTS
b. Name your files: CHnumber_FirstNameLastName (e.g., CH1_RobynVerdery).
2. Upload and submit your file to be graded.
a. Click on "Assessments" located on the navigation bar at the top of the page to open
the dropdown menu.
b. Click on "Assignments."
c. Select the assignment for this chapter.
d. Upload your file(s).
e. Double check you uploaded the right files.
f. Submit them.

Completing Chapter Excel Quizzes

1. Click on "Assessments" located on the navigation bar at the top of the page to open
the dropdown menu.
2. Click on "Exams/Quizzes."
3. Select the Quiz for this chapter.
4. Complete the Quiz.
5. Double check your answers against your Excel worksheets.
6. Submit the Quiz.
DL MOH
 5500 13500

3700 End WIP

Cost per unit

End FG
Requirement 1
a. Identify the following as either a product cost or a period cost.
b. Select the appropriate product cost category, or select expense.

Cost
Description Classification Category
Coconut flakes used in the cookies. Product Direct materials (DM)
Depreciation on the ovens. Product Manufacturing overhead (MOH)
Insurance on the computers used in the accounting office. Period Expense
Wages for the bakery security guard. Product Manufacturing overhead (MOH)
Salaries of the bakers who make the cookies. Product Direct labor (DL)
Electricity for the bakery. Product Manufacturing overhead (MOH)
Heating for the corporate headquarters. Period Expense
Freight for shipping the cookies to customers. Period Expense
Salary of the baking supervisor. Product Manufacturing overhead (MOH)
 Requirement 2
Complete the Schedule of Cost of Goods Manufactured. *

Fremont Cookies
Schedule of Cost of Goods Manufactured
Month Ended March 31, 2024

Beginning Work-in-Process Inventory $ 4,000

Direct Materials Used $ 5,000
Direct Labor $ 5,500
Manufacturing Overhead $ 13,500
Total Manufacturing Costs Incurred during Period $ 24,000 3700
Total Manufacturing Costs to Account For 28,000
Ending Work-in-Process Inventory (3,700)
Cost of Goods Manufactured $ 24,300

Requirement 3
Using the results from Requirement 2, calculate the cost per unit for goods manufactured assuming
18,500 units were manufactured. *

Cost of Goods Manufactured $ 24,300

Total Units Produced 18,500
Unit Product Cost $ 1.31

HINTS
All values other than the value for Ending Work-in-Process Inventory should be entered as positive
values. Use minus sign to enter the value for Ending Work-in-Process Inventory.
Cell | Hint:
E10, D11:D13, E16, C25 | Use the numeric values from the Instructions tab for calculations. Do not use
an equal sign (=) when entering a single numeric value.

E14 | Use the =SUM( ) function to calculate the total manufacturing costs incurred during period.
*(Always use cell references and formulas where appropriate to receive full credit. All values
should be added as positive numbers.)
Work-in-Process Inventory
4000 24300
5000
5500
13500
3700
 Requirement 4
Complete the Cost of Goods Sold schedule.
(Always use cell references and formulas where appropriate to receive full credit. All values
should be added as positive numbers.)

Fremont Cookies
Schedule of Cost of Goods Sold
Month Ended March 31, 2024

Beginning Finished Goods Inventory $ 847

Cost of Goods Manufactured 24,300
Cost of Goods Available for Sale 25,148 $ 1,248
Ending Finished Goods Inventory (1,248)
Cost of Goods Sold $ 23,900

HINTS

All values other than the value for Ending Finished Goods Inventory should be entered as
positive values. Use minus sign to enter the value for Ending Finished Goods Inventory.
Cell | Hint:
D9:D10, D12 | Use an equal sign (=), the appropriate cells and numeric values from the
Instructions and ENTERANSWERS2 tabs.
D11 | Use the function =SUM( ) to calculate the cost of goods available for sale.
e full credit. All values

Finished Goods Inventory

$ 847 $ 23,900
24300
$ 1,248

ld be entered as
oods Inventory.

alues from the

Requirement 5: Complete the Income Statement
(Always use cell references and formulas where appropriate to receive full credit.
All values should be added as positive numbers.)

Fremont Cookies
Income Statement
Month Ended March 31, 2024

Sales Revenue $ 41,735

Cost of Goods Sold 23,900
Gross Profit 17,836
Selling and Administrative Expense 12,150
Net Income $ 5,686