Question

The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company.

Advertising expense	$31,000	Direct labor	$684,800
Depreciation expense—Office equipment	10,900	Income taxes expense	239,200
Depreciation expense—Selling equipment	10,000	Indirect labor	55,600
Depreciation expense—Factory equipment	33,600	Miscellaneous production costs	9,700
Factory supervision	140,300	Office salaries expense	74,000
Factory supplies used	7,600	Raw materials purchases	997,000
Factory utilities	41,000	Rent expense—Office space	25,000
Inventories		Rent expense—Selling space	25,700
Raw materials, December 31, 2016	167,900	Rent expense—Factory building	76,800
Raw materials, December 31, 2017	176,000	Maintenance expense—Factory equipment	36,000
Work in process, December 31, 2016	19,500	Sales	4,565,400
Work in process, December 31, 2017	19,600	Sales salaries expense	395,000
Finished goods, December 31, 2016	168,900
Finished goods, December 31, 2017	139,500

	LEONE COMPANY Income Statement For Year Ended December 31, 2017 Cost of goods sold Goods available for sale 0 Cost of goods sold 0 0 Operating expenses Selling expenses Total selling expenses 0 General and administrative expenses Total general and administrative expenses 0 Total operating expenses 0 Income before taxes 0 Net income $0

Answer 1

Leone Company Income statement For Year Ended December 31, 2017 Sales Cost of Goods sold Cost of goods Manufactured Finished goods December 31,2016 Goods available for sale Less: Finished goods December 31,2017 Cost of Goods sold Gross profit from sales Operating expenses Selling Expenses Depreciation Expenses- Selling Equipment Rent Expense -selling space Sales salaries expense Advertising Expense Total Selling expenses General and administrative Expenses Rent Expense-Offiec space Office salaries expense Depreciation expenses-Office Equipment Total General and administrative Expense Total operatine Expenses Income Before taxes Income Tax expense $ 4,565,400 $2,074,200 168,900 $2,243,100 $ 139,500 $ 2,103,600 $ 2,461,800 $ 10,000 $ 25,700 $395,000 $ 31,000 $ 461,700 25,000 74,000 10,900 $ 109,900 $ 571,600 S 1,890,200 $ 239,200 $ 1,651,000 Net Income EA A

Leone Company Manufacturing Statement For Year Ended December 31, 2017 Direct Materials: Raw Materials , December 31,2016 Raw materials Purchase Raw materials available for use |Less Raw Material, December 31,2017 Direct materials used Direct labor Factory Overhead Factory supervision Factory supplies Used Factory Utilities Maintenance expense -Factory Equipment Rent Expense-Factory Building Depreciation expense-Factory equipment Indirect Labor Miscellenious Production costs Total Factory oveerhead 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 $167,900 997,000 $1,164,900 $ 176,000 $ 988,900 $ 684,800 $ 140,300 $ 7,600 41,000 $ $ 36,000 $ 76,800 33,600 55,600 9,700 $ 400,600 $2,074,300 $ 19,500 $2,093.800 $ 19,600 $2,074,200