Question

Required information Problem 18-3A Schedule of cost of goods manufactured and income statement; inventory analysis LO P2, A1 [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 $ 28,500 Direct labor 8,000 Income taxes expense 10,300 Indirect labor 37,200 Miscellaneous production costs 130,300 Office salaries expense 8,200 Raw materials purchases 35,000 Rent expense-office space Rent expense-Selling space 158,300 Rent expense-Factory building 184,000 Maintenance expense-Factory equipment 18,400 Sales 20,400 Sales salaries expense 161,900 140,400 $ 686,700 295,700 56,700 12,000 71,000 932,000 23,000 28,800 78,200 37,100 4,536,600 394,600

Answer 1

S 906,300 686,700 S Leone Company Schedule of Cost of Goods Manufactured For Year Ended December 31, 2017 Direct Materials: Raw Materials, December 31,2016 S 158,300 Raw materials Purchase S 932,000 Raw materials available for use $ 1.090.300 Less: Raw Material. December 31, 2017 S 184,000 Direct materials used Direct labor Factory Overhead Factory supervision $ 130,300 Factory supplies Used $ 8,200 Factory Utilities $ 35,000 Maintenance expense - Factory Equipment S 37.100 Rent Expense-Factory Building $ 78,200 Depreciation expense-Factory equipment $ 37,200 Indirect Labor $ 56,700 Miscellenious Production costs S 12,000 Total Factory overhead Cost Total Manufacturing Costs Add: Work in Process, December 31,2016 Total cost of work in process Less: Work in process, December 31,2017 Cost of goods Manufactured $ 394,700 $ 1,987,700 $ 18,400 $ 2,006,100 $ 20,400 $ 1,985,700

$ 4,536,600 $ $ 2,007,200 2,529,400 Leone Company Income statement For Year Ended December 31, 2017 Sales Cost of Goods sold Cost of goods Manufactured $ 1,985,700 Finished goods December 31,2016 $ 161,900 Goods available for sale $ 2,147,600 Less: Finished goods December 31,2017 $ 140,400 Cost of Goods sold Gross profit Operating expenses Selling Expenses Depreciation Expenses-Selling Equipment S 10,300 Rent Expense -selling space $ 28,800 Sales salaries expense $ 394,600 Advertising Expense $ 28,500 Total Selling expenses General and administrative Expenses Rent Expense-Offiec space $ 23,000 Office salaries expense $ 71,000 Depreciation expenses Office Equipment S 8.000 Total General and administrative Expense Total operatine Expenses Income Before taxes Income Tax expense Net Income $ 462,200 $ $ $ $ $ 102,000 564,200 1,965,200 295,700 1,669,500