Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations: Variable costs per unit: Manufacturing: Direct materials $ 26 Direct labor $ 13 Variable manufacturing overhead $ 3 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 240,000 Fixed selling and administrative expenses $ 80,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $52 per unit. Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for year 1 and year 2. b. Prepare an income statement for year 1 and year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for year 1 and year 2. (Round your answer to 2 decimal places.) b. Prepare an income statement for year 1 and year 2. (Round your intermediate calculations to 2 decimal places) 3. Reconcile the difference between variable costing and absorption costing net operating income in year 1 and year 2.

Part 2

Consider the budgeted income statement for Happy Turtles for the month ended 30 June 2017 below:-

			$	$
Sales                                               Less:   Cost of Goods Sold				290,000
Inventory, 31 May 2017			50,000
Purchases			192,000
Available for sale			242,000
Inventory, 30 June 2017			(40,000)
				202,000
Gross profit				88,000

Less:   Operating expenses

                   Wages                                                                                        36,000

                   Utilities                                                                          5,000

                   Advertising                                                                                10,000

                   Depreciation                                                                                1,000

                   Office expenses                                                            4,000

                   Insurance and property taxes                                                    3,000                (59,000)

       Operating profit                                                                                                                                 29,000

                                                                                                                                       =====

Additional information:

• The cash balance on 31 May 2017 $15,000.
• Sales proceeds are collected as follows: 80% the month of sale; 10% the second month; and 10% the third month; explain what % will be use and why the other % will not be use.
• Accounts receivable are $ 44,000 on 31 May 2017 consisting of $ 20,000 from April 2017 sales and $24,000 from May 2017 sales, show the calculation and write process of getting the answer.
• Accounts payable on 31 May 2017 are $ 145,000.
• Happy Turtles pay 25% of purchases during the month of purchase and the remainder during the following month, what is the month of purchase, specify your answers.
• All operating expenses requiring cash are paid during the month of recognition, except that insurance and property taxes are paid annually in December for the forthcoming year.
• do we put amortization on the cash budget, write the reason.

Required:

Prepare a cash budget for June 2017. Confine your analysis to the given data. Ignore income taxes.

PharmaNiaga Bhd (PNB) is considering its intangible assets on how the matters below should be treated in its financial statements for the year ended 31 March 2020.

a). On 1 October 2019, PNB acquired Halia Bhd, a small company that specializes in pharmaceutical drug research and development on the usage of local source, halia hitam, for skin care products. The purchase consideration was by a share exchange and valued at RM35 million. The fair value of Halia Bhd’s net assets was RM15 million (excluding any items referred to below). Halia Bhd owns a patent for an established successful product that had a remaining life of 8 years. A firm specialist advisor, HebatBrand, has estimated the current value of this patent to be RM10 million, however the company is awaiting the outcome of clinical trials where the product has been tested to treat a different skin problem. If the trials are successful, the value of the product is estimated to be RM15 million. Also included in the company’s statement of financial position is RM2 million for medical research that has been conducted on behalf of a client.

b). PNB has developed and patented a new drug which has been approved for clinical use. The costs of developing the drug were RM12 million. Based on early assessments on its sales success, HebatBrand, has estimated its market value at RM20 million.

c).PNB’s manufacturing facilities have recently received a favorable inspection by government medical scientists. Consequently, the company has been granted an exclusive five-year license to manufacture and distribute a new vaccine. Although the license had no direct cost PNB, its directors feel its granting is a reflection of the company’s standing and have asked HebatBrand to value the license. Accordingly, they have placed a value of RM10 million on it.                                                                             

d) In the current accounting period, PNB has spent RM3 million sending its staff PNB’s on specialist training courses. Whilst these courses have been expensive, they have led to a marked improvement in production quality and staff now needs less supervision. This in turn led to an increase in revenue and cost reductions. The directors of PNB believe these benefits will continue at least three years and wish to treat the training costs as an asset.

e). In December 2019, PNB paid RM5 million for a television advertising campaign for its products that will run for 6 months from 1 January 2020 to 30 June 2020. The directors believe that increased sales as a result of the publicity will continue for two years from the start of the advertisements.

Required:

Explain with reasons and justifications how the directors of PNB should treat the above items in the financial statements for the year ended 31 March 2020.

Note: The values given by Hebatbrand can be taken as being reliable measurements. Ignore depreciation.

please be inform that the formula used and process of how each number have been get must be mention

Short term decision making  

Shot plc manufactures three types of furniture products - chairs, stools and tables. The budgeted unit cost and resource requirements of each of these items are detailed below:

	Chair   ($)	Stools($)	Table ($)
Timber cost	5.00	15.00	10.00
Direct labour cost	4.00	10.00	8.00
Variable overhead cost	3.00	7.50	6.00
Fixed overhead cost	4.50	11.25	9.00
	16.50	43.75	33.00
Budgeted volumes per annum	4,000	2,000	1,500

These volumes are believed to equal the market demand for these products. The fixed overhead costs are attributed to the three products on the basis of direct labour hours. The labour rate is $4.00 per hour. The cost of timber is $2.00 per square metre. The products are made from a specialist timber. A memo from the purchasing manager advises you that because of a problem with the supplier it is to be assumed that this specialist timber is limited in supply to 20,000 square metres per annum.

The sales director has already accepted an order for 500 chairs, 100 stools and 150 tables, which if not supplied would incur a financial penalty of $2,000. These quantities are included in the market demand estimates above. The selling prices per unit of the three products are:

-

Chair $20.00

Stool $50.00 Table $40.00

Required:

1. Determine the optimum production plan and state the net profit that this should yield per annum.                                                                                                           
2. Discuss one qualitative factor that you should consider (especially in the long term) in your decision in part (a).                                                                              

Entries for Direct Labor and Factory Overhead

Schumacher Industries Inc. manufactures recreational vehicles. Schumacher Industries uses a job order cost system. The time tickets from June jobs are summarized as follows:

Job 11-101	$2,240
Job 11-102	1,520
Job 11-103	1,200
Job 11-104	1,830
Job 11-105	1,200
Factory supervision	1,040

Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $30 per direct labor hour. The direct labor rate is $17 per hour.

a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.

	Work in Process
	Factory Overhead
	Wages Payable

b. Journalize the entry to apply factory overhead to production for June. If an amount box does not require an entry, leave it blank.

	Work in Process
	Factory Overhead

Cost of Production Report

The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process.

Work in process, January 1, 10,600 units, 75% completed		$100,965*
*Direct materials (10,600 × $7.2)	$76,320
Conversion (10,600 × 75% × $3.1)	24,645
	$100,965
Materials added during January from Weaving Department, 163,200 units		$1,199,520
Direct labor for January		229,536
Factory overhead for January		280,544
Goods finished during January (includes goods in process, January 1), 165,200 units		—
Work in process, January 31, 8,600 units, 25% completed		—

a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0". For the cost per equivalent unit computations, round your answers to two decimal places.

Karachi Carpet Company
Cost of Production Report-Cutting Department
For the Month Ended January 31
Unit Information
Units charged to production:
Inventory in process, January 1
Received from Weaving Department
Total units accounted for by the Cutting Department
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1
Started and completed in January
Transferred to finished goods in January
Inventory in process, January 31
Total units to be assigned cost
Cost Information
Cost per equivalent unit:
		Direct Materials	Conversion
Total costs for January in Cutting Department		$	$
Total equivalent units
Cost per equivalent unit		$	$
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			$
Costs incurred in January
Total costs accounted for by the Cutting Department			$
Costs allocated to completed and partially completed units:
Inventory in process, January 1 balance			$
To complete inventory in process, January 1	$	$
Cost of completed January 1 work in process			$
Started and completed in January	$
Transferred to finished goods in January			$
Inventory in process, January 31
Total costs assigned by the Cutting Department			$

Feedback

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (December). If required, round your answers to two decimal places.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit		$
Change in conversion cost per equivalent unit		$

On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month.

April 1 Nozomi invested $41,000 cash and computer equipment worth $25,000 in the company in exchange for common stock.

April 2 The company rented furnished office space by paying $2,400 cash for the first month’s (April) rent.

April 3 The company purchased $1,200 of office supplies for cash.

April 10 The company paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.

April 14 The company paid $900 cash for two weeks' salaries earned by employees.

April 24 The company collected $15,500 cash for commissions earned.

April 28 The company paid $900 cash for two weeks' salaries earned by employees.

April 29 The company paid $250 cash for minor repairs to the company's computer.

April 30 The company paid $1,350 cash for this month's telephone bill.

April 30 The company paid $1,600 cash in dividends.

The company's chart of accounts follows:

101	Cash	405	Commissions Earned
106	Accounts Receivable	612	Depreciation Expense—Computer Equip.
124	Office Supplies	622	Salaries Expense
128	Prepaid Insurance	637	Insurance Expense
167	Computer Equipment	640	Rent Expense
168	Accumulated Depreciation—Computer Equip.	650	Office Supplies Expense
209	Salaries Payable	684	Repairs Expense
307	Common Stock	688	Telephone Expense
318	Retained Earnings	901	Income Summary
319	Dividends

Use the following information:

1. Prepaid insurance of $133 has expired this month.
2. At the end of the month, $400 of office supplies are still available.
3. This month’s depreciation on the computer equipment is $400.
4. Employees earned $400 of unpaid and unrecorded salaries as of month-end.
5. The company earned $2,400 of commissions that are not yet billed at month-end.

Required:
1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts.
3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30.
4. Journalize the adjusting entries for the month and prepare the adjusted trial balance.
5a. Prepare the income statement for the month of April 30.
5b. Prepare the statement of retained earnings for the month of April 30.
5c. Prepare the balance sheet at April 30.
6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b.
6b. Post the journal entries to the ledger.
7. Prepare a post-closing trial balance.

1. Net Present Value and Competing Projects

   For discount factors use Exhibit 12B.1 and Exhibit 12B.2.

   Spiro Hospital is investigating the possibility of investing in new dialysis equipment. Two local manufacturers of this equipment are being considered as sources of the equipment. After-tax cash inflows for the two competing projects are as follows:
   

   Year		Puro Equipment		Briggs Equipment
   1		$320,000		$120,000
   2		280,000		120,000
   3		240,000		320,000
   4		160,000		400,000
   5		120,000		440,000

   Both projects require an initial investment of $560,000. In both cases, assume that the equipment has a life of 5 years with no salvage value.

   Required:

   Round present value calculations and your final answers to the nearest dollar.

   1. Assuming a discount rate of 10%, compute the net present value of each piece of equipment.

   Puro equipment:	$
   Briggs equipment:	$

   2. A third option has surfaced for equipment purchased from an out-of-state supplier. The cost is also $560,000, but this equipment will produce even cash flows over its 5-year life. What must the annual cash flow be for this equipment to be selected over the other two? Assume a 10% discount rate.
   $ per year

Analyzing Manufacturing Cost Accounts

Fire Rock Company manufactures designer paddle boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for June:

Materials
June 1	Balance	28,300	June 30	Requisitions	(A)
June 30	Purchases	113,600

Work in Process
June 1	Balance	(B)	June 30	Completed jobs	(F)
June 30	Materials	(C)
June 30	Direct labor	(D)
June 30	Factory overhead applied	(E)

Finished Goods
June 1	Balance	0	June 30	Cost of goods sold	(G)
June 30	Completed jobs	(F)

Wages Payable
			June 30	Wages incurred	112,500

Factory Overhead
June 1	Balance	21,300	June 30	Factory overhead applied	(E)
June 30	Indirect labor	(H)
June 30	Indirect materials	15,100
June 30	Other overhead	88,500

In addition, the following information is available:

a. Materials and direct labor were applied to six jobs in June:

Job No.		Style	Quantity		Direct Materials				Direct Labor
201		T100	180			$18,500				$14,000
202		T200	390			33,110				26,000
203		T400	200			14,800				8,000
204		S200	250			31,100				24,000
205		T300	150			17,450				14,000
206		S100	110			5,880				4,000
Total			1,280			$120,840				$90,000

b. Factory overhead is applied to each job at a rate of 160% of direct labor cost.

c. The June 1 Work in Process balance consisted of two jobs, as follows:

Job No.	Style	Work in Process, June 1
201	T100	$5,400
202	T200	15,900
Total		$21,300

d. Customer jobs completed and units sold in June were as follows:

Job No.	Style	Completed in June	Units Sold in June
201	T100	X	144
202	T200	X	312
203	T400		0
204	S200	X	210
205	T300	X	125
206	S100		0

1. Determine the missing amounts associated with each letter and complete the following table. If required, round amounts to the nearest dollar. If an answer is zero, enter in "0". Enter all amounts as positive numbers.

Job No.	Quantity	June 1 Work in Process		Direct Materials		Direct Labor		Factory Overhead		Total Cost		Unit Cost		Units Sold	Cost of Goods Sold
No. 201		$ 5,400		$ 18,500		$ 14,000		$		$		$				$
No. 202		15,900		33,110		26,000
No. 203				14,800		8,000
No. 204				31,100		24,000
No. 205				17,450		14,000
No. 206				5,880		4,000
Total		$21,300		$120,840		$90,000		$		$						$

a. Materials requisitions $

b. Work in process beginning balance $

c. Direct materials $

d. Direct labor $

e. Factory overhead applied $

f. Completed jobs $

g. Cost of goods sold $

h. Indirect labor $

2. Determine the June 30 balances for each of the inventory accounts and factory overhead. Use the minus sign to indicate any credit balances.

Materials	$
Work in process	$
Finished goods	$
Factory overhead	$

Your friend Tom Smith has decided to expand Smith Sales Company. He has acquired an expansion loan and purchased $500,000 of plant assets as part of the expansion. Tom values your advice and requests your help in properly depreciating the plant assets. Tom has paid you well for your advice and you readily accept the challenge.

Explain the different methods that can be used to calculate depreciation including: Straight-line, Double declining balance, Units of production & Sum of years digits.

The Sarbanes-Oxley Act is arranged into eleven titles. As far as compliance is concerned, the most important sections within these are often considered to be 302, 401, 404, 409, 802 and 906. in your own words, what are this sections about? please no copy and paste, explain with your own words, and no handwriting please, thanks!

Select one type of retailer from each of the 3 categories (food, general merchandise, and service-NOTE: there are other service examples that you can choose from like urgent doctor or dental care, hair salon etc.).

Store name and location/place:

Type of retailer:

Product assortment:

Pricing strategy:

Promotion strategy:

General evaluation: (from your viewpoint as a consumer of this retailer)

Need answer please!!

Delta Catfish Company has taken a position in its tax return to claim a tax credit of $15 million (direct reduction in taxes payable) and has determined that its sustainability is “more likely than not,” based on its technical merits. Delta has developed the probability table shown below of all possible material outcomes:

Probability Table ($ in millions)
Amount of the tax benefit that management expects to receive	$	15			$	12.0			$	9.0			$	6.0			$	3.0
Percentage likelihood that the tax benefit will be sustained at this level		10	%			20	%			25	%			20	%			25	%

Delta’s taxable income is $90 million for the year. Its effective tax rate is 40%. The tax credit would be a direct reduction in current taxes payable.

Required:
1. At what amount would Delta measure the tax benefit in its income statement?
2. Prepare the appropriate journal entry for Delta to record its income taxes for the year.
  

This year, a company has each of the following income statement items:

1. Gross profits on installment sales.
2. Revenues on long-term construction contracts.
3. Estimated costs of product warranty contracts.
4. Premiums on officers’ life insurance policies with the company as beneficiary.

Indicate where deferred income taxes are reported in the financial statements. Specify when deferred income taxes would need to be recognized for each of the items above, and indicate the rationale for such recognition.

The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow:

	Total			Dirt Bikes			Mountain Bikes			Racing Bikes
Sales	$	921,000		$	264,000		$	403,000		$	254,000
Variable manufacturing and selling expenses		469,000			112,000			200,000			157,000
Contribution margin		452,000			152,000			203,000			97,000
Fixed expenses:
Advertising, traceable		69,200			8,700			40,300			20,200
Depreciation of special equipment		42,800			20,300			7,400			15,100
Salaries of product-line managers		114,300			40,200			38,900			35,200
Allocated common fixed expenses*		184,200			52,800			80,600			50,800
Total fixed expenses		410,500			122,000			167,200			121,300
Net operating income (loss)	$	41,500		$	30,000		$	35,800		$	(24,300)

*Allocated on the basis of sales dollars.

Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out.

Required:

1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes?

2. Should the production and sale of racing bikes be discontinued?

3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines.