Costing case

Any guidance would be much appreciated. I am enrolled in a cost accounting class and we were given a case study to complete. My partner and I spent around 12 hours total on it across several days, turned in the preliminary spreadsheet to get feed back and she just came back this morning with the ugliest email basically saying we were idiots, didn’t listen in class and didn’t know what we were doing. I’ve reached out to peers and everyone else is as equally lost. So we have no idea where to go now. I am hoping I that is able to tell us where the heck we were so far off.

I uploaded the case study here since I can’t attach a workbook on this forum (it’s just sharepoint and doesn’t download anything):

https://uccsoffice365-my.sharepoint.com/personal/lleblanc_uccs_edu/_layouts/15/guestaccess.aspx?guestaccesstoken=EJIlvJwIomyYVDhh8CWfwoQCC%2f%2f9NsXWGTiEZ8JZO0k%3d&docid=073fdb66ce1d54a968769941c6bb7d2ab

I uploaded the file we created here:

https://uccsoffice365-my.sharepoint.com/personal/lleblanc_uccs_edu/_layouts/15/guestaccess.aspx?guestaccesstoken=g1cfvstzDyTIoBcMV%2b5YneUnOsDj2aW%2b%2f8leKUAvZOc%3d&docid=1025c2a9c1bfa495d9b47713550c2c11d

Below are the comments that were left for us in bother email and online:

OK, first of all, what you list as period costs are NOT period costs.
Packaging is directly traceable to the product and you have to have packaging for the product, so it is a direct cost.
I have said this several times, but I will say it one last time. Decorative chocolate is an OVERHEAD cost.
Wax paper and storage boxes are an OVERHEAD cost because they are necessary in producing the truffles.

The only thing you have as a period cost is the cost of the truffles given away as samples (and you will need to be careful there, because of the change in packaging….)

There are several places where you did not read the case carefully or where you have ignored what I have already said in class and on Blackboard. I have commented on the spreadsheet and re-attached it.
There is a major problem with DL.
There is a major problem with OHD.
I am very concerned that you do not seem to understand the difference between product and period costs…or at least have totally ignored this difference in your costing. What’s going on here?

Truffle case helpful hints
Posted on: Friday, February 27, 2015 4:09:33 PM MST
SSCar is made with dark chocolate. They are also *square*, so there is no decorative icing used to indicate their flavor.
The recipe I gave you includes ALL ingredients/amounts necessary .. .do not worry about what is fondant vs. coating.
The recipe I gave you includes ALL ingredients/amounts necessary and the resulting good production figures…in other words, wastage is automatically included when you cost the 5.5 dozen good SSCar truffles you get out of one batch.

The wax paper and boxes cost given is the TOTAL for the entire season, NOT per batch!

OHD is a bit tricky because of the driver…ask yourself what the cost object is? Then what is the TOTAL BUDGETED REQUIRED AMOUNT (HINT: the total is going to have to account for both truffles sold and truffles handed out as promotional samples). So, if I gave you total demand in dozens sold…and I told you promotional give-aways were 20% of the TOTAL production, that means the dozens sold is 80%….so back into total dozens and then into total batches….

SALES TAX IS NOT INCOME TAX. Sales tax is never included in calculation of revenues and does not appear on the income statement. Credit card charges, however, ARE affected by the sales tax Thor collects (assume all sales are on credit cards) and should be netted from the original total revenue to get Net Revenue.

Any suggestions/insights would be appreciated. The few things I do see that we missed were that Sea Salt caramels are dark chocolate, and we calculated time for 4 batches instead of per batch. But per her email, it was far more incorrect than just those two items.

Thanks!