Question

the following calendar year-end information is taken from December 31, 2017, adjusted trial balance and other records of Leone Company. prepare the company’s 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.

Slack Dashboard VES - TSA Prev Pre-Enroll Old Navy-Login iPhone 8 A ne...n of iPhone. Beginner's Ya... Coderanch) Having proble...am for Bingo CACI Appraisala. CMMI Institute - Registration/Log. PMP Skillport P.. Passing the #PM... Grammarly So T work, Part 2 Required information Problem 14-3A 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, 100 Direct Labor 8,580 Income taxes expense 10,488 Indirect labor 38,100 Miscellaneous production costs 126,888 Office salaries expense 8,200 Raw materials purchases 31,800 Rent expense-Office space Rent expense-Selling space 159,600 Rent expense-Factory building 183,000 Maintenance expense-Factory equipment 16,400 Sales 21,400 Sales salaries expense 163,500 135,800 $ 677,300 263,900 57,900 10,600 64,000 930,000 24,000 25,500 79,300 37,800 4,555,300 392,200 Problem 14-3A Part 2 2. Prepare the company's 2017 income statement that reports separate categories for (a) selling expenses and administrative expenses. general and

Answer 1

Solution:

Leone company
Schedule of cost of goods manufactured
For the year ended December 31, 2017
Direct Materials:
Raw Materials inventory, December 31, 2016	$1,59,600
Add: Purchases of Raw Materials	$9,30,000
Cost of material available for use	$10,89,600
Less: Raw Material Inventory, December 31, 2017	$1,83,000
Raw material used in production		$9,06,600
Direct Labor cost		$6,77,300
Factory Overhead:
Depreciation Expense-Factory Equipment	$38,100
Factory Supervision	$1,26,000
Factory Supplies used	$8,200
Factory Utilities	$31,000
Indirect Labor	$57,900
Miscellaneous production cost	$10,600
Rent expense- Factory Building	$79,300
Maintenance expense-Factory Equipment	$37,800
Total Factory Overhead		$3,88,900
Total Manufacturing Costs Incurred in 2017		$19,72,800
Add: Work in Process, December 31, 2016		$16,400
Subtotal		$19,89,200
Less: Work in process inventory, December 31, 2017		$21,400
Cost of goods manufactured		$19,67,800

Leone company
Income Statement
For the year ended December 31, 2017
Sales		$45,55,300
Cost of Goods sold:
Finished Goods, December 31, 2016	$1,63,500
Add: Cost of Goods manufactured	$19,67,800
Cost of Goods available for sale	$21,31,300
Less: Finished Goods, Decemebr 31, 2017	$1,35,800	$19,95,500
Gross Profit		$25,59,800
Operating Expenses:
Administrative expenses:
Depreciation Expense- Office Equipment	$8,500
Office Salaries expense	$64,000
Rent expense- Office space	$24,000	$96,500
Selling Expenses:
Advertising Expense	$28,100
Depreciation Expense- Selling Equipment	$10,400
Sales Salaries expenses	$3,92,200
Rent expense- Selling space	$25,500	$4,56,200
Total Operating Expenses		$5,52,700
Income Before Income Tax		$20,07,100
Less: Income Tax expense		$2,63,900
Net Income		$17,43,200