Question

Required information Problem 14-3A Schedule of cost of goods manufactured and income statement; inventory analysis LO P2, A1 (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 $ 30.000 Direct labor 10,100 Income taxes expense 10,400 Indirect labor 35,100 Miscellaneous production costs 113,500 office salaries expense 9,600 Raw materials purchases 37,000 Rent expense office space Rent expense-Selling space 168,800 Rent expense-Factory building 181,000 Maintenance expense-Pactory equipment 15,500 Sales 21,100 Sales salaries expense 169.900 135,700 $ 686.800 257.900 58,700 11,300 68,000 993,000 22.000 26.500 79,300 39,600 4.556700 391.400 Problem 14-3A Part 1 Required: 1. Prepare the company's 2019 schedule of cost of goods manufactured LEONE COMPANY Schedule of Cost of Goods Manufactured 12 of 2 Next >

Answer 1

$ $ 980,800 686,800 LEONE COMPANY Schedule of Cost of Goods Manufactured For Year Ended December 31, 2019 Direct materials Raw materials inventory, December 31, 2018 $ 168,800 Raw materials purchases $ 993,000 Raw materials available for use $ 1,161,800 Less: Raw materials inventory, December 31, 2019 $ 181,000 Direct materials used Direct labor Factory overhead Depreciation expense-Factory equipment 35,100 Factory supervision $ 113,500 Factory supplies used 9,600 Factory utilities 37,000 Rent expense-Factory building 79,300 Maintenance expense-Factory equipment 39,600 Miscellaneous production costs 11,300 Indirect labor 58,700 Total factory overhead costs Total manufacturing costs Add: Work in process inventory, December 31, 2018 Total cost of work in process Less: Work in process inventory, December 31, 2019 Cost of goods manufactured $ 384,100 $ 2,051,700 $ 15,500 $ 2,067,200 $ 21,100 $ 2,046,100

$ 4,556,700 $ $ 2,080,300 2,476,400 LEONE COMPANY Income Statement For Year Ended December 31, 2019 Sales Cost of goods sold Cost of goods manufactured $ 2,046,100 Add: Finished goods inventory, December 31, 2018 $ 169,900 Goods available for sale $ 2,216,000 Less: Finished goods inventory, December 31, 2019 $ 135,700 Cost of goods sold Gross profit from sales Operating expenses Selling expenses Depreciation expense-Selling equipment $ 10,400 Rent expense-Selling space $ 26,500 Sales salaries expense $ 391,400 Advertising expense $ 30,000 Total selling expenses General and administrative expenses Depreciation expense-Office equipment $ 10,100 Office salaries expense $ 68,000 Rent expense-Office space $ 22,000 Total general and administrative expenses Total operating expenses Income before taxes Income taxes expense Net income $ 458,300 $ 100,100 $ 558,400 $ 1,918,000 $ 257,900 $ 1,660,100