Question

The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company.

Required:
1. Prepare the company’s 2019 schedule of cost of goods manufactured.

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 $ 30,800 Direct labor 11,600 Income taxes expense 9,800 Indirect labor 35,300 Miscellaneous production costs 125, 900 office salaries expense 8,200 Raw materials purchases 34,000 Rent expense-office space Rent expense-Selling space 169, 700 Rent expense-Factory building 180,000 Maintenance expense-Factory equipment 17,500 Sales 19,800 Sales salaries expense 163,800 143, 300 $ 680,600 246,900 55,200 11,800 68,000 989,000 29,000 26,600 80,000 39,000 4,626,600 395,400

Answer 1

LEONE COMPANY
	SCHEDULE OF COST OF GOODS MANUFACTURED
	For the year ended December 31, 2019
	Direct materials:
	Raw materials inventory, December 31, 2018	169,700
	Raw material purchases	989,000
	Raw materials available for use	11,58,700
	Less: Raw materials inventory, December 31, 2017	180,000
	Direct materials used		978,700
	Direct labor		680,600
	Factory overhead:
	Factory supervision	125,900
	Factory supplies used	8,200
	Factory utilities	34,000
	Maintenance expense-Factory equipment	35,300
	Rent expense-Factory building	80,000
	Depreciation expense-Factory equipment	36100
	Indirect labor	55,200
	Miscellaneous production costs	11,800
	Total factory overhead costs		386,500
	Total manufacturing costs		20,45,800
	Add: Goods in process inventory, December 31, 2018		17,500
	Total cost of goods in process		20,63,300
	Less: Goods in process inventory, December 31, 2019		19,800
	Cost of goods manufactured		$20,43,500