ABC purchased a machine on Jan 1, 2016 for $92788 with an estimated useful life of 12 years and no salvage value ABC uses the straight line depreciation method On December 31, 2018 technological changes suggest the machine may be impaired On December 31, 2018 the machine is expected to generate net cash flows of $6014 per year over its remaining life On December 31, 2018 the fair value of the machine is $45126.42 On Dec 31, 2018 the carrying value of the machine before any impairment loss is: Answer 69592 On Dec 31, 2018 the impairment loss, if any, is (enter as a negative amount): Answer On Dec 31, 2018 the carrying value of the machine after any impairment loss is: Answer

Fantasy Fashions had used the LIFO method of costing inventories, but at the beginning of 2018 decided to change to the FIFO method. The inventory as reported at the end of 2017 using LIFO would have been $10 million higher using FIFO.

Retained earnings reported at the end of 2016 and 2017 was $230 million and $250 million, respectively (reflecting the LIFO method). Those amounts reflecting the FIFO method would have been $240 million and $262 million, respectively. 2017 net income reported at the end of 2017 was $18 million (LIFO method) but would have been $20 million using FIFO. After changing to FIFO, 2018 net income was $26 million. Dividends of $9 million were paid each year. The tax rate is 40%.
  
Required:
1. Prepare the journal entry at the beginning of 2018 to record the change in accounting principle.
2. In the 2018–2017 comparative income statements, what will be the amounts of net income reported for 2017 and 2018?
3. Prepare the 2018–2017 retained earnings column of the comparative statements of shareholders’ equity.

req1. journal

Record the change in accounting principle.

req2.

In the 2018–2017 comparative income statements, what will be the amounts of net income reported for 2017 and 2018? (Enter your answers in millions.)

req3.

Prepare the 2018–2017 retained earnings column of the comparative statements of shareholders’ equity. (Enter your answers in millions.)

Umdhloti House Repairs Ltd uses a job costing system to account for household repair jobs that the company undertakes in the KwaZulu Natal Province. Each job is unique and based on the requirements of the specific client. The following information relates to the company for the year ended 31 May 2018.
On 1 June 2017, direct materials of R8000 were in inventory.
During the year ended 31 Mayb 2018, additional direct materials of R120 000 were purchased.
Direct materials with a total cost of R117 000 were issued to jobs during the year ended 31 May 2018 (this amount includes the direct material issues to all jobs that the company worked on during the year ended 31 May 2018).
No indirect inventory is kept.
The company uses absorption costing. Fixed manufacturing overheads are allocated to jobs based on direct labour hours. The total budgeted fixed manufacturing overheads for the company for the year ended 31 May 2018 were R54 000 and the total budgeted direct labour hours of the compnay for the year ended 31 May 2018 were 1000.
On 1 June 2017 the value of opening WIP was R24000.
On 31 May 2018 only one job was still work-in-progress and the variable costs incurred on this job up to date at 31 May 2018 were as follows:
Direct Material(incl in R117000 total issues)    R3000
Direct Labour (for 30hours)                                   R1500
Variable manufacturing overheads                      R200

On 31 May 2018 only one completed job that the company worked on during the year ended 31 May 2018 was not yet invoiced to the client. The job will only be sold to the client in July 2018 at a selling price of R4300 and a gross profit of R800.

Calculate the total value of all the closing inventory of Umdhloti House Repairs Lts as at 31 May 2018

At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $28 million attributable to a temporary book-tax difference of $70 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $65 million. Payne has no other temporary differences. Taxable income for 2018 is $200 million and the tax rate is 40%.

Payne has a valuation allowance of $7 million for the deferred tax asset at the beginning of 2018.

Required:
1. At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $28 million attributable to a temporary book-tax difference of $70 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $65 million. Payne has no other temporary differences. Taxable income for 2018 is $200 million and the tax rate is 40%.

Payne has a valuation allowance of $7 million for the deferred tax asset at the beginning of 2018.

Required:
1. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

A). Record 2018 income taxes.

B) Record valuation allowance for the end of 2018.

2. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that one-fourth of the deferred tax asset will ultimately be realized. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

A) Record 2018 income taxes.

B) Record valuation allowance for the end of 2018.

Tanghang Industries production budget from the 2^nd quarter of 2018, projected the following amounts of units to be produced:

April 1,100 units

May     1,250 units

June     1,300 units

Each unit requires 2 parts of component A and 3 parts of component B. Component A cost is $1.15 per unit and component B cost is $.85 per unit.

Calculate the Direct Material budgeted cost for May 2018

Calculate the Direct Material budgeted cost for the quarter April - June 2018

The raw materials inventory policy is 0 ending inventory, 0 beginning inventory. How much inventory of component A is required in April 2018?

Each unit requires the following labor:

2 hours in the processing department

1 hour in the assembly department

Processing department labor rate is $5/hour

Assembly department labor rate is $7/hour

Using the information from the production budget of Tangshang Industries

Calculate Total Direct Labor Cost in the processing department for the quarter April – June 2018.

Calculate Total Direct Labor Cost for June 2018.

Calculate Total Direct Labor Cost for the quarter April – June 2018.

Variable Factory overhead is $.60 per unit

Fixed Factory overhead is $1,000 monthly

Using the information from the production budget of Tangshang Industries

Calculate total variable overhead cost for May 2018

Calculate total variable overhead cost for the quarter April - June 2018

Calculate total overhead cost for the quarter April - June 2018

Calculate total product cost for the quarter April - June 2018

Calculate total product cost per unit for the quarter April - June 2018

If the sale price is $34.00, what will be the Gross Profit per unit?

If the sale price is $34.00 for the units produced during the quarter, what will be the Total Gross Profit?

Arndt, Inc., reported the following for 2018 and 2019 ($ in millions): 2018 2019 Revenues $ 996 $ 1,031 Expenses 784 824 Pretax accounting income (income statement) $ 212 $ 207 Taxable income (tax return) $ 210 $ 230 Tax rate: 40% Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2018 for $60 million. The cost is tax deductible in 2018. Expenses include $3 million insurance premiums each year for life insurance on key executives. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2018 and 2019 were $36 million and $48 million, respectively. Subscriptions included in 2018 and 2019 financial reporting revenues were $28 million ($10 million collected in 2017 but not recognized as revenue until 2018) and $36 million, respectively. Hint: View this as two temporary differences—one reversing in 2018; one originating in 2018. 2018 expenses included a $22 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold in 2019. During 2017, accounting income included an estimated loss of $5 million from having accrued a loss contingency. The loss was paid in 2018 at which time it is tax deductible. At January 1, 2018, Arndt had a deferred tax asset of $7 million and no deferred tax liability. 6. Suppose that during 2019, tax legislation was passed that will lower Arndt’s effective tax rate to 30% beginning in 2020. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2019.

Required information

[The following information applies to the questions displayed below.]

Arndt, Inc., reported the following for 2018 and 2019 ($ in millions):

1. Expenses each year include $20 million from a two-year casualty insurance policy purchased in 2018 for $40 million. The cost is tax deductible in 2018.
2. Expenses include $2 million insurance premiums each year for life insurance on key executives.
3. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2018 and 2019 were $26 million and $31 million, respectively. Subscriptions included in 2018 and 2019 financial reporting revenues were $18 million ($7 million collected in 2017 but not recognized as revenue until 2018) and $26 million, respectively. Hint: View this as two temporary differences—one reversing in 2018; one originating in 2018.
4. 2018 expenses included a $15 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold in 2019.
5. During 2017, accounting income included an estimated loss of $4 million from having accrued a loss contingency. The loss was paid in 2018 at which time it is tax deductible.
6. At January 1, 2018, Arndt had a deferred tax asset of $4 million and no deferred tax liability.

6. Suppose that during 2019, tax legislation was passed that will lower Arndt’s effective tax rate to 35% beginning in 2020. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2019.

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2018 with a refund liability of $340,000. During 2018, Halifax sold merchandise on account for $11,900,000. Halifax's merchandise costs it 65% of merchandise selling price. Also during the year, customers returned $580,000 in sales for credit, with $321,000 of those being returns of merchandise sold prior to 2018, and the rest being merchandise sold during 2018. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year.

Required:

1. Prepare entries to (a) record actual returns in 2018 of merchandise that was sold prior to 2018; (b) record actual returns in 2018 of merchandise that was sold during 2018; and (c) adjust the refund liability to its appropriate balance at year end.
2. What is the amount of the year-end refund liability after the adjusting entry is recorded?

1.Record the actual sales return of merchandise sold prior to 2018.

Refund Liability

Accounts Receivable

2. Record the cost of merchandise returned for goods sold prior to 2018.

Inventory

Inventory - Estimate returns

3. Record the actual sales return of merchandise sold during 2018.

Sales Returns

Accounts Receivable

4. Record the cost of merchandise returned for goods sold during 2018.

Inventory

Cost of goods sold

5. Record the year-end adjusting entry for estimated returns

Sales Returns

Refund Liability

6. Record the adjusting entry for the estimated return of merchandise to inventory.

Inventory- Estimated returns

Cost of goods sold

2. Ending Balance of the year end refund liability after adjusting is recorded?

A manufacturing area needs to forecast workhours. This is a slightly different project. The data for several months is supplied below. Beside each of the actual numbers in black, the forecast is provided in red. The goal is to calculate three stats on the data: MAD, MAPE, and the tracking signal. Be careful since the data is listed beginning with the most recent. Please round to two decimal places. For MAPE, please convert to a percentage before rounding. Do not enter the percent sign.