Question

uTube Maps Champlain Canvas Week 1 Saved Help 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 Pinished goods, December 31, 2018 Finished goods, December 31, 2019 $ 34, 100 Direct labor 9.300 Income taxes expense 9.600 Indirect labor 32,200 Miscellaneous production costs 122,100 Office salaries expense 9,100 Raw materials purchases 38,000 Rent expense-office space Rent expense-Selling space 163,200 Rent expense Factory building 183,000 Maintenance expense-Factory equipment 16,100 Sales 24,100 Sales salaries expense 163,000 144.000 $ 679,000 252,000 59,700 10.100 62,000 986,000 26,000 25, 700 79.500 37,800 4,605,700 395,800 2. Prepare the company's 2019 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. LEONE COMPANY Income Statement For Year Ended December 31, 2019 Cost of goods sold < Prev 10 of 10 Next

Answer 1

COST OF GOODS MANUFACTURED
Work in process inventory, December 31, 2018			$        16,100
Direct material cost:
Raw materials inventory, December 31, 2018	$         1,63,200
Materials purchased	$         9,86,000
Total materials available	$       11,49,200
Raw materials inventory, December 31, 2019	$         1,83,000
Cost of DM used		$        9,66,200
Direct labor		$        6,79,000
Factory overhead:
Depreciation-Factory equipment	$             32,200
Factory supervision	$         1,22,100
Factory supplies used	$               9,100
Factory utilities	$             38,000
Indirect labor	$             59,700
Rent expense-Factory building	$             79,500
Miscellaneous production costs	$             10,100
Maintenance expense-Factory equipment	$             37,800
Total factory overhead		$        3,88,500
Manufacturing cost for the month			$ 20,33,700
Total manufacturing cost			$ 20,49,800
Work in process, December 31, 2019			$        24,100
Cost of goods manufactured			$ 20,25,700
INCOME STATEMENT
Sales revenue			$ 46,05,700
Cost of goods sold:
Finished goods inventory, December 31, 2018		$        1,63,000
Cost of goods manufactured		$      20,25,700
Cost of goods available for sale		$      21,88,700
Less: Finished goods inventory, December 31, 2019		$        1,44,000
Cost of goods sold			$ 20,44,700
Gross margin			$ 25,61,000
Operating expenses:
Selling expenses:
Advertising expenses	$             34,100
Depreciation expense-Selling equipment	$               9,600
Sales salaries expense	$         3,95,800
Rent expense-Selling space	$             25,700
Total selling expense		$        4,65,200
General and administrative expenses:
Office salaries expenses	$             62,000
Depreciation expense-Office equipment	$               9,300
Rent expense-Office space	$             26,000
Total general and administrative expense		$            97,300
Total operating expense			$     5,62,500
Income before taxes			$ 19,98,500
Income tax expense			$     2,52,600
Net income			$ 17,45,900