Question

Required information [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. $ 683, 000| 257, 100 56, 200| 11,700 67, 000 969, eee 28, e00| 29,900 77, 300 $ 29, 200 Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory Direct labor Income taxes expense 10,400 9,900 31,700 Miscellaneous production costs 112, 500 9,900 Indirect labor Office salaries expense Raw materials purchases Rent expense-Office space Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment supplies used Factory utiiities Inventories з0, өөе 168, 100 190, 000 19,600 21, 300 163, зее 139, 100 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 36, 900 4,476, 600| 398, 100 Sales Sales salaries expense

Answer 1

LEONE COMPANY Schedule of Cost of Goods Manufactured For Year Ended December 31, 2019

Direct materials Raw Materials Inventory, December 31, 2018 Raw Materials Purchases 168100 969000 1137100 190000 947100 683000 Raw Material available for use Less: Raw material Inventory, December 31, 2019 Direct Material used Direct Labor Factory Overhead: Indirect Labor Factory supplies used Factory utilities Factory Supervision Maintenance expense - Factory equipment Depreciation expense - Factory equipment Miscellaneous production costs Rent expense - Factory building 56200 9900 30000 112500 36900 31700 11700 77300 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 3662001 1996300 19600 2015900 21300 1994600

LEONE COMPANY Income Statement For Year Ended December 31, 2019 Sales Cost of goods sold Cost of goods manufactured Add: Finished goods, December 31, 2016 4476600 1994600 163300 2157900 139100 Goods available for sale Less: Finished goods, December 31, 2017 Cost of goods sold Gross Profit from sale 2018800 2457800

Operating Expenses: (a) Selling expense: Depreciation Expense - Selling equipment Rent expense - Selling space Sales Salaries expense Advertising expense 9900 29900 398100 29200 467100 Total selling Expense |(b) General and administrative expenses: Depreciation expense - Office equipment Office salaries expense Rent expense - Office space 10400 67000 28000 Total general and administrative expenses Total operating expenses Income before taxes Income taxes expense Net Income 105400 572500 1885300 257100 1628200