Question

Check m Required information Part 2 of 2 The following information applies to the questions displayed below The followying calendar year-end intformation is taken from the December 31 2017, adjusted trial balance and other records of Leone Company 12.5 points Advertising expense Depreciation expense-office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Inventories $ 680,200 $33,400 Direct labor 9,100 Income taxes expense 1e,100 Indirect labor 31,800 Miscellaneous production costs 135,000 Office salaries expense 8,300 Raw materials purchases 30,000 Rent expense-office space 294,400 59,108 10,100 71,000 995,000 look Print 29,e08 25,400 80,608 48,৪৪৪ 4,456,100 395,500 Rent expense-Selling space 163,600 Rent expense-Factory building 177,000 Haintenance expense-Factory equipment 15,000 Sales 23,900 Sales salaries expense 166,800 140,300 Raw materials, December 31, 2e16 Raw materials, December 31, 2e17 Work in process, December 31, 2016 Work in process, December 31, 2017 Finished goods, December 31, 2816 Finished goods, December 31, 2817 References 00

Answer 1

Solution: 2 LEONE COMPANY Income statement For the year ended December 31,2017 Particulars Amount Amount sales $4,456,100 Cost of goods sold Cost of goods manufactured $2,047,800 $166,800 Finished goods inventory, December 31, 2016 Goods available for sale $2,214,600 $140,300 Less: Finished goods inventory, December 31, 2017 Cost of goods sold Gross profit from sales Operating expenses $2,074,300 $2.381,800 Selling expenses $10,100 Depreciation expenses - Selling equipment Rent expenses Selling space Sales salaries expenses $25,400 $395,500 $33,400 Advertising expenses Total selling expenses $464,400 General and administrative expenses $9,100 Depreciation expenses - Office equipment $71,000 Office salaries Expenses $29,000 Rent expenses - Office space Total general and administrative expenses $109,100 $573,500 Total operating expenses Income before taxes $1,808,300 $294,400 Income taxes expense Net income $1,513,900 Explanation: LEONE COMPANY Cost of goods manufactured For the year ended December 31,2017 Particulars Amount Amount Direct materials $163,600 Raw material inventory, December 31, 2016 $995,000 Raw material purchases $1,158,600 Raw material available for use $177,000 Less: Raw material inventory, December 31, 2017 $981,600 Direct materials used Direct Labor $680,200 Factory overhead $59,100 Indirect labor $8,300 $30,000 Factory supplies used Factory utilities $135,000 Factory supervision Maintenance expenses Factory equipment $40,000 Depreciation expenses Factory equipment Miscellaneous production costs $31,800 $10,100 $80,600 Rent expense - Factory Building $394,900 Total Factory overhead costs Total manufacturing costs Add: Work in process inventory, December 31, 2016 Total cost of work in process Less: Work in process inventory, December 31, 2017 Cost of goods manufactured $2,056,700 $15,000 $2,071,700 $23,900 $2,047,800