The following information is available for Satterfield's Custom Glass for the fiscal year ending December3 2020: Beginning balance in Work In Process Inventory Ending balance in Work In Process Inventory Beginning balance in Finished Goods Inventory Ending balance in Finished Goods Inventory %$4 210,000 300,000 500,000 400,000 Direct material cost 2,500,000 Direct labor cost 3,000,000 Manufacturing overhead Selling and administrative expenses 1,700,000 1,350,000 8,500,000 Sales Required a. Prepare a schedule of costs of goods manufactured. Satterfield's Custom Glass Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2020 Beginning balance in work in process inventory Add current manufacturing costs: 210,000 Direct Material Cost 2,500,000 3,000,000 Direct Labor Cost Total Less ending balance in work in process inventory Cost of goods manufactured %24
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.
Here is the format, this is the homework assingment.
![### Manufacturing Cost Overview
#### Direct Material Cost
- **Amount:** $2,500,000
#### Direct Labor Cost
- **Amount:** $3,000,000
**Total Cost:** Sum of Direct Material and Direct Labor Costs.
### Income Statement Preparation
**b.** Prepare an income statement for fiscal 2020 while ignoring income taxes.
#### Satterfield’s Custom Glass
**Income Statement**
For the Year Ended December 31, 2020
1. **Sales**
- [Insert sales amount]
2. **Less cost of goods sold:**
- [Insert COGS amount]
3. **Gross Profit**
- [Calculated as Sales minus Cost of Goods Sold]
4. **Less nonmanufacturing expenses:**
- [Insert expenses]
5. **Net Income (Loss):**
- [Calculated as Gross Profit minus Nonmanufacturing Expenses]
### Instructions for Completing the Income Statement:
- Calculate the total cost of goods manufactured by adding Direct Material and Direct Labor costs.
- Enter the sales figure for the year.
- Subtract the cost of goods sold from sales to determine Gross Profit.
- Deduct any nonmanufacturing expenses to find the Net Income (or Loss) for the year.
This structure highlights the financial components necessary for understanding the manufacturing and financial performance of Satterfield’s Custom Glass.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9a1a208d-3a6b-462b-9570-3325a1893bc5%2F1eaccace-d7b2-4dcf-b977-a60bc8c77484%2F9q0jop4_processed.jpeg&w=3840&q=75)
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