Question

Required information {The following information applies to the questions displayed below.) The following calendar year-end information is taken from the December 31, 2019, 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, 2018 Raw materials, December 31, 2019 Work in process, December 31, 2018 Work in process, December 31, 2019 Finished goods, December 31, 2018 Finished goods, December 31, 2019 $ 25, 600 Direct labor 11,400 Income taxes expense 10,500 Indirect labor 36, 900 Miscellaneous production costs 129,500 Office salaries expense 9,000 Raw materials purchases 45,000 Rent expense-office space Rent expense-Selling space 160, 900 Rent expense-Factory building 194,000 Maintenance expense-Factory equipment 15,100 Sales 20,900 Sales salaries expense 163.600 140, 600 $ 674, 300 271, 900 57,200 9,000 68,000 963,000 24,000 29,400 82,100 39, 400 4,596, 200 391,200

Answer 1

		Leone Company
Income statement
Sales						4,596,200
cost of goods sold
Finished goods iventory,December 31,2018					163,600
Cost of goods manufactured					2,006,500
Goods available for sale					2,170,100
less:Finished goods inventory,December 31,2019					140,600
cost of goods sold						2,029,500
Gross profit from sales						2,566,700
Operating expenses
Selling expenses
Sales salaries expense					391,200
Depreciation expense-selling equipment					10,500
Rent expense-selling space					29,400
Advertising expense					25,600
Total selling expenses						456,700
General and administrative expensess
Rent expense-office space					24,000
office salaries expense					68,000
Depreciaiton expense-office equipment					11,400
Total general and administrative expense						103,400
total operating expense						560,100
income before taxes						2,006,600
income tax expense						271,900
Net income						1,734,700