20 MWF PP Ch 02(c-1)

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Housekeeping

• Don’t sit on back rows:

• 9:00am section 01 – last two rows• 10:00am section 02 – last two rows• 12 noon section 03 – last two rows• 1:00pm section 04 – use rows 2 & 3 onl

• Chapter 2 HW is due Saturday, Jan 30th @ noon• Chapter 2 Quiz is due Saturday, Jan 30th @ noon

• !nclu"e course & section # in all emails on sub$ect

line% or e'ample: 2020%003 ((%%

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Copyright © 2015 Pearsondu!ation, "n!#

2

Accounting Lab Hours 2016Spring(revised)MONDAY

8 am - 10 pm

TUESDAY 8 am - 5 pm

WEDNESDAY 8 am - 10 pm

THURSDAY8 am - 1 pm; 5 –10pm

FRIDAY 8 am - 10 pm

SATURDAY 9 am - 6 pm

http://www.cob.unt.edu/ab/tutor.php

Accounting LabAppoint!ents

http://www.cob.unt.edu/lab/tutor.phphttp://www.cob.unt.edu/lab/tutor.phphttp://www.cob.unt.edu/lab/tutor.phphttp://www.cob.unt.edu/lab/tutor.php

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SC-1C

Thomas BikesComputation of Direct Materials Used

Direct materials used:Beginning raw materials inventory $ 4,100

Purchases of direct materials $16,400

Import duties 1,300

Freight-in 200 17,900

Direct materials available for use 22,000Ending raw materials inventory (1,900)

Direct materials used $20,100

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Computation of Direct Materials Used

Direct materials used:Beginning raw materials inventory $ 27,000

Purchases of direct materials $79,000

Import duties - 0 -

Freight-in - 0- 79,000

Direct materials available for use 106,000Ending raw materials inventory (31,000)

Direct materials used $ 75,000

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ire!t 6ateria)s used >egE6 7 E6Pur!h7rt"n7uties:ndE6Cost o- ;oods 6-g >egW"P76used787"67"87969H:ndW"P

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Cost o- ;oods So)d / 15,00

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Cost o- ;oods So)d / 15,00

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Cost incurred Variable or Fixed

a. Cost of coffee used at a Starbucks store

b. Hourly wages paid to sales clerks at Best Buy

c. Monthly flower costs for a florist

d. Cost of fuel used for a trucking company

e. Shipping costs for Amazon.com

f. Monthly rent for a nail salon

g. Sales commissions at a car dealership

h. Monthly insurance costs for the home office of Google

i. Monthly depreciation of equipment for a customer service office

Variable

VariableVariableVariableVariable

Fixed

Variable

FixedFixed

SC-16 %#&'&,e* Pg '2

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Cost incurred Variable or Fixed

j. Cost of fabric used at a clothing manufacturer

k. Cost of fruit sold at a grocery store

l. Monthly office lease costs for a CPA firm

m. Monthly cost of French fries at a McDonald’s restaurant

n. Property taxes for a restaurant

o. Depreciation of exercise equipment at the YMCA

Variable

VariableFixedVariableFixed

Fixed

EC-C8 p 8

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Cost incurred relevant/irrelevanta. The interest rate paid on invested funds, when deciding how

much inventory to keep on-hand

b. Cost of computers purchased 6 months ago, when deciding

whether to upgrade to computers with faster processing speed

c. The property tax rates in different locales, when deciding where

to locate the company’s headquarters

d. The type of fuel (gas or diesel) used by delivery vans, when

deciding which make and model of van to purchase for the

company’s delivery van fleet.

e. Cost of operating automated production machinery versus the

cost of direct labor, when deciding whether to automate

production.

f. The fair market value of old manufacturing equipment when

deciding whether or not to replace it with newer equipment.

g. Cost of purchasing packaging materials from an outside vendor,

when deciding whether to continue manufacturing the packagingmaterials in-house.

h. Depreciation expense on old manufacturing equipment when

deciding whether or not to replace it with newer equipment.

i. The cost of land purchased 3 years ago, when deciding whether

to build on the land now or wait two more years before building.

relevant

irrelevantrelevant

relevant

relevant

relevant

relevantirrelevantirrelevant

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Ma&aer"G Re"p#&"''+''e"

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20 MWF PP Ch 02(c-1)