Question

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Required information The following information applies to the questions displayed below) The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company Advertising expense Depreciation expense-office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Inventories Raw materials, December 31, 2016 Raw materials, December 31, 2017 Work in process, December 31, 2016 Work in process, December 31, 2017 Finished goods, December 31, 2016 Finished goods, December 31, 2017 $ 26,100 Direct labor 11,000 Income taxes expense 10.300 Indirect labor 35,300 Miscellaneous production costs 119.900 office salaries expense 9,700 Raw materials purchases Rent expense-office space Rent expense-selling space 164,200 Rent expense-Factory building 175,000 Maintenance expense-Factory equipment 19,100 Sales 24,000 Sales salaries expense 168.700 142.600 $ 685,600 288.700 59,120 10,500 61,eee 928,000 27.000 27,700 52,200 38,700 4,615,700 394,300

Answer 1

Please find below table useful to compute desired results: -

D 2. A B C Schedule of Cost of goods manufactured For the year ended December 31,2017 3 Particulars Details Amount($) 4 Direct Materials 5 Raw materials Inventory, Dec 31,2016 164200 6 Raw materials purchase 928000 7 Raw materials available for use =B5+B6 8 Less: Raw materials Inventory, Dec 31,2017 -175000 9 Direct Materials Used =B7+B8 10 Direct Labor 685600 11 Factory Overheads 12 Factory supplies used 9700 13 Factory Utilities 40000 14 Indirect Labor 59100 15 Factory Supervision 119900 16 Depreciation Expense-Factory Equipment 35300 17 Rent Expense- Factory Building 82200 18 miscellaneous production costs 10500 19 Maintenance Expense-Factory Equipment 38700 20 Total Factory Overhead Cost =SUMB12:B19) 21 Total Manufacturing Cost =C9+C10+C20 22 Add: Working in progress inventory, Dec 31,2016 19100 23 Total cost of work in progress =C21+C22 24 Less: Working in progress inventory, Dec 31, 2017 -24000 25 Cost of Goods Manufactured =C23+C24 26 E F G Income Statement For the year ended December 31, 2017 Particulars Details Amount($) Cost of Goods Sold Finished Goods, December 31,2016 168700 Add: Cost of Goods Manufactured =C25 Goods available for sale =F5+F6 Less: Finished Goods, Dec 31,2017 -142600 Cost of Goods Sold =F7+F8 Sales 4615700 Less: Cost of Goods Sold =-F9 Gross Profit (A) =G10+G11 Operating Expenses Selling Expenses Advertising Expenses 26100 Depreciation Expense-Selling Equipment 10300 Rent Expense-Selling space 27700 Sales Salaries expense 394300 Total Selling expense =SUM(F15 F18) General Administration Expense Depreciation Expense - Office Equipment |11000 Office Salaries Expense 61000 Rent Expense-Office Space 27000 Total General and Administration expense =SUM(F21:F23) Total Operating Expense (B) =G19+G24 Income before Tax(A-B) =G12-G25 Less: Income tax -288700 Net Income =G26+G27

End results would be as follows: -

A C D G 2. Amount(S) Amount(S) 917,200 685,600 4,615,700 (2.019,400) 2,596,300 B Schedule of Cost of goods manufactured For the year ended December 31.2017 3 Particulars Details 4 Direct Materials 5 Raw materials Inventory, Dec 31,2016 164.200 6 Raw materials purchase 928,000 7 Raw materials available for use 1,092.200 8 Less: Raw materials Inventory, Dec 31,2017 (175,000) 9 Direct Materials Used 10 Direct Labor 11 Factory Overheads 12 Factory supplies used 9.700 13 Factory Utilities 40.000 14 Indirect Labor 59.100 15 Factory Supervision 119.900 16 Depreciation Expense-Factory Equipment 35.300 17 Rent Expense - Factory Building 82.200 18 miscellaneous production costs 10,500 19 Maintenance Expense-Factory Equipment 38.700 20 Total Factory Overhead Cost 21 Total Manufacturing Cost 22 Add: Working in progress inventory. Dec 31,2016 | 23 Total cost of work in progress 24 Less: Working in progress inventory, Dec 31,2017 25 Cost of Goods Manufactured 26 E F Income Statement For the year ended December 31.2017 Particulars Details Cost of Goods Sold Finished Goods, December 31,2016 168.700 Add: Cost of Goods Manufactured 1.993,300 Goods available for sale 2.162.000 Less: Finished Goods. Dec 31,2017 (142.600) Cost of Goods Sold 2.019.400 Sales Less: Cost of Goods Sold Gross Profit (A) Operating Expenses Selling Expenses Advertising Expenses 26.100 Depreciation Expense-Selling Equipment 10,300 Rent Expense-Selling space 27.700 Sales Salaries expense 394,300 Total Selling expense Genenral Administration Expense Depreciation Expense - Office Equipment 11,000 Office Salaries Expense 61,000 Rent Expense - Office Space 27.000 Total General and Administration expense Total Operating Expense (B) Income before Tax(A-B) Less: Income tax Net Income 458.400 395.400 1.998,200 19.100 2,017,300 (24,000) 1.993,300 99,000 557,400 2.038.900 (288,700) 1.750.2001