Question

Required information The following information applies to the questions displayed below) 1 of 2 The following calendar year-end Information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company $ Advertising expense Depreciation expense-office equipment Depreciation expenseselling equipment Depreciation expense Factory equipment Factory supervision Factory supplies used Factory utilities Inventories Raw materials, December 31, 2016 Raw materials, December 31, 2017 Work in process, December 31, 2016 Work in process, December 31, 2017 Finished goodsDecember 31, 2016 Finished goods, December 31, 2017 31,000 Direct labor 10,400 Income taxes expense 10,400 Indirect labor 38, 800 Miscellaneous production costs 116,500 office salaries expense 9,500 Raw materials purchases 42.000 Rent expense office space Rent expense-selling space 159,900 Rent expense-Factory building 192,000 Maintenance expense-Factory equipment 17, 400 Sales 18,400 Sales salaries expense 166,00 141,700 $ 699,490 254,400 57, 900 19.500 64,000 939,000 21,000 28, 200 31, 200 39,000 4,586, 100 306, 200 References Required: 1. Prepare the company's 2017 schedule of cost of goods manufactured

Answer 1

LEONE COMPANY
Schedule of Cost of Goods Manufactured
For Year Ended December 31, 2017
Direct Materials:
Raw materials, December 31, 2016	$159,000
Add: Raw materials purchases	$939,000
Raw materials available for use	$1,098,000
Less: Raw materials, December 31, 2017	$192,000
Direct Materials used		$906,000
Direct labor		$699,400
Factory Overhead:
Depreciation expense — Factory equipment	$38,800
Factory supervision	$116,500
Factory supplies used	$9,500
Factory utilities	$42,000
Indirect labor	$57,900
Rent expense—Factory building	$81,200
Maintenance expense—Factory equipment	$39,900
Miscellaneous production costs	$18,500
Total factory overhead costs		$404,300
Total manufacturing costs        [$906,000 + $699,400 + $404,300]		$2,009,700
Add: Work in process, December 31, 2016		$17,400
Total Cost of work in Process		$2,027,100
Less: Work in process, December 31, 2017		$18,400
Cost of Goods Manufactured		$2,008,700