Question

The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company. $ 32,700 Direct labor 7,600 Income taxes expense 11,000 Indirect labor 36,200 Miscellaneous production costs 117,700 Office salaries expense 9,000 Raw materials purchases 36,000 Rent expense-Office space $ 683,000 258, 300 59,400 11,100 71,000|| Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Inventories 933,000 26,000| 26,600 Rent expense-Selling space Rent expense-Factory building 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, 81,100 36,900 4,516,300 390,100 163,900 192,000 Maintenance expense-Factory equipment 15,000 Sales 21,900 Sales salaries expense 162,100 139,300 2017

Answer 1

LEONE COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Cost of goods manufactured (Note 1) 4,516,300 1,968,400 162,100 Finished goods inventory, December 31, 2016 Goods available for sale 2,130,500 139,300 Less: Finished goods inventory, December 31, 2017 Cost of goods sold Gross profit from sales Operating expenses Selling expenses Depreciation expense-Selling equipment Rent expense-Selling space Sales salaries expense Advertising expense 1,991.200 2,525,100 11,000 26,600 390,100 32,700 Total selling expenses General and administrative expenses 460,400 Rent expense-Office space Office salaries expense Depreciation expense-Office equipment 26,000 71,000 7,600 Total general and administrative expenses Total operating expenses 104.600 565,000 Income before taxes 1,960,100 258.300 1,701,800 Income taxes expense Net income

Note 1: LEONE COMPANY Schedule of Cost of Goods Manufactured For Year Ended December 31, 2017 Direct materials Rawmaterials inventory, December 31, 2016 163,900 Raw materials purchases 933,000 1,096,900 Rawmaterials available for use Less: Raw materials inventory, December 31, 2017 192,000 Direct materials used 904,900 683,000 Direct labor Factory overhead Factory supervision Factory supplies used Factory utilities Maintenance expense-Factory equipment Rent expense-Factory building Depreciation expense-Factory equipment 117,700 9,000 36,000 36,900 81,100 36,200 59,400 Indirect labor Miscellaneous production costs 11.100 Total factory overhead costs Total manufacturing costs 387.400 1,975,300 Add: Work in process inventory, December 31, 2016 15,000 Total cost of goods in process Less: Work in process inventory, December 31, 2017 Cost of goods manufactured 1,990,300 21,900 1,968,400