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 34,000 Direct labor 8,400 Income taxes expense 10,000 Indirect labor 33,200 Miscellaneous production costs 146,eee Office salaries expense 7,600 Raw materials purchases 44,000 Rent expense-office space Rent expense-Selling space 163,200 Rent expense-Factory building 178,000 Maintenance expense-Factory equipment 16,780 Sales 20,400 Sales salaries expense 168,400 144,600 678, see 236,500 59,206 11.ee 7 . 985, eee 22,00 26,400 80,2ed 37.2 4,616,67 394, bee

Answer 1

LEONE COMPANY Income statement for Year Ended December 31, 2017 sales Cost of goods gold finished goods inventory, Dec 31, 2016 $ 168,400 Cost of goods manufactured $2,063,400 $ 4, 616,600 $ 2,087,200 $2,529,400 Goods available for sale $ 2,231,800 les: finished goods inventory, Der 31, 2017 & 144,600 less. Cost of goods sold Gross profit from sales Operating expenses selling expenses Sales salaries expense $394,600 Depseciation expense - Selling equipment $ 10,000 Rent expense - selling space $ 26,400 Advertising expense $ 34,000 $465,000 Total selling expenses. General and administrative expenses Rent expense - Office space $ 22,000 office salaries expense $ 70,000 Depreciation expense - office equipment & 8,400 Total general and administrative expenses Less: To tal operating expenses Income before taxes. Less: Income taxes expense. Net Income $100,400 $565,400 $1,964,000 $236,500 $1,727,500

Calculation : LEONE COMPANY Schedule of cost of Goods manufactured for Year Ended December 31, 2017 Direct Materials Raw materials inventory, December 31, 2016 $ 163,200 Raw materials purchases $985,000 $970,200 $678,500 Raw materials available for use $1,148, 200 Less: Raw materials inventory, December 31, 2017 $ 178,000 Direct materials used Direct labor factory ouer head factory supplies used $ 7,600 factory utilities $ 44,ooo Indirect labor $59,900 factory supervision $ 146,000 Depreciation expense - Factory equipment & 33,200 Rent expense - factoxy building $80, 200 Miscellaneous production costs & 11, ooo Maintenance expense - factory equipment $ 37,200 $ 418,400 Total factory over head costs. Total manufacturing costs Add: work in process inventory, Dec. 31, 2016 Total cost of work in process Less: work in process inventory, Dec 31, 2017 - cost of goods manufactured $2,067,100 $ 16,700 $2,083,800 $ 20,400 $2,063,400