1. COST: Cover material in ONE DAY
TERMS
& FLOWS
Cost
COST: Cover material in ONE DAY
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2. Product
Period
Variable
Fixed
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3. Manufacturing Overhead Variable Fixed
Direct Materials
Variable
Direct Labor
Variable
Manufacturing Overhead
Variable
Fixed
Examples of MOH:
Indirect Materials
Indirect Labor
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4. Page 4

5. Page 5

6. The two income statement formats are organized by the
Absorption Costing Income Statement
For Y/E ...
Revenue
Cost of Goods Sold
Gross Margin
Selling and Admin. Costs
Operating Income
Income Taxes
Net Income (After Tax)
Product Costs
Period Costs
The two income statement
formats are organized by the
four types of costs defined
earlier.
Variable Costing Income Statement
For Y/E ...
Revenue
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
Income Taxes
Net Income (After Tax)
Balance Sheet
As of ...
Assets
Liabilities
Owners’ Equity
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7. Page 7

8. Page 8

9. Page 9

10. Page 10

11. Do a simple problem (VC vs. AC)
Cost
TERMS & FLOWS
Do a simple problem (VC vs. AC)
SoMuch Stereos (COST)
Show I/S in good form
Do a cost flows example
Cattle Co (COST)
(also show CF)
Have students work on problem
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