5-a. Compute gross profit for April. 5-b. Show how the three inventory accounts are reported on the April 30 balance sheet. Complete this question by entering your answers in the tabs below. Req 5A Req 5B
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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Marco Company shows the following costs for three jobs worked on in April.
Balances on March 31
Direct materials used (in March)
Direct labor used (in March)
Overhead applied (March)
Costs during April
Direct materials used
Direct labor used
Overhead applied
Status on April 30
Req 5A
Job 306
Req 5B
$ 26,000
24,000
12,000
Inventories
Raw materials
Work in process
Finished goods
Total inventories
131,000
104,000
Finished
(sold)
< Req 5A
Job 307
$ 40,000
16,000
8,000
Complete this question by entering your answers in the tabs below.
210,000
155,000
?
Additional Information
a. Raw Materials Inventory has a March 31 balance of $87,000.
b. Raw materials purchases in April are $570,000, and total factory payroll cost in April is $386,000.
c. Actual overhead costs incurred in April are indirect materials, $51,000; indirect labor, $24,000; factory rent, $35,000;
factory utilities, $22,000; and factory equipment depreciation, $57,000.
d. Predetermined overhead rate is 50% of direct labor cost.
e. Job 306 is sold for $655,000 cash in April.
Finished
(unsold)
5-a. Compute gross profit for April.
5-b. Show how the three inventory accounts are reported on the April 30 balance sheet.
Show how the three inventory accounts are reported on the April 30 balance sheet.
Job 308
$ 110,000
103,000
In process
Req 5B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce414cf0-3510-4369-b07b-737dca602a2e%2F2642135f-4187-414c-a65a-da4d83f5b29a%2Fek2fvgx_processed.png&w=3840&q=75)
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