Business, 25.02.2020 21:57 Beast3dgar
Millington Materials is a leading supplier of building equipment, building products, materials and timber for sale, with over 200 branches across the mid-south. On January 1, 2018, management decided to change from the average inventory costing method to the FIFO inventory costing method at each of its outlets.
The following table presents information concerning the change. The income tax rate for all years is 40%.
Income before Income Tax
FIFO Average Cost Difference
Before 2017 $15 million $8 million $7 million
2017 8 million 5 million 3 million
2018 10 million 9 million 1 million
Required:
1. Prepare the journal entry to record the change in accounting principle. (All tax effects should be reflected in the deferred tax liability account.)
2. Determine the net income to be reported in the 2018-2017 comparative income statements.
3. Which other 2018 amounts would be reported differently in the 2018-2017 comparative income statements and 2018-2017 comparative balance sheets than they were reported the previous year?
4. How would the change be reflected in the 2018-2017 comparative statements?
Answers: 1
Business, 21.06.2019 17:10
Titus manufacturing, inc. provided the following information for the year: purchases - direct materials $91,000 plant utilities and insurance 68,000 indirect materials 11,170 indirect labor 4270 direct materials used in production 99,000 direct labor 117,500 depreciation on factory plant & equipment 4000the inventory account balances as of january 1 are given below. direct materials $44,000 work-in-progress inventory 10,000 finished goods inventory 50,000what is the ending balance in the direct materials account? $135,000 $36,000 $110,170 $6000
Answers: 3
Business, 22.06.2019 05:20
What are the general categories of capital budget scenarios? describe the overall decision-making context for each.
Answers: 3
Business, 22.06.2019 17:30
Danielle enjoys working as a certified public accountant (cpa) and assisting small businesses and individuals with managing their finances and taxes. which general area of accounting is her specialty? danielle specialized in
Answers: 1
Business, 23.06.2019 02:10
Which of the following best explains the purpose of a supply schedule? a. to calculate how much time it takes for distribution. b. to indicate how supply and demand relate to price. c. to show the relationship between quantity supplied and prices. d. to demonstrate how the supply decreases as price increases.
Answers: 1
Millington Materials is a leading supplier of building equipment, building products, materials and t...
English, 03.02.2021 18:40
Chemistry, 03.02.2021 18:40
Mathematics, 03.02.2021 18:40
Mathematics, 03.02.2021 18:40
Mathematics, 03.02.2021 18:40
Mathematics, 03.02.2021 18:40
Mathematics, 03.02.2021 18:40
Mathematics, 03.02.2021 18:40
Social Studies, 03.02.2021 18:40
Chemistry, 03.02.2021 18:40
Mathematics, 03.02.2021 18:40
Mathematics, 03.02.2021 18:40