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. 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 $ 32,400 Direct labor 8,100 Income taxes expense 10,200 Indirect labor 39,100 Miscellaneous production costs 114,100 Office salaries expense 8,800 Raw materials purchases 39,000 Rent expense-Office space Rent expense-Selling space 156, 400 Rent expense-Factory building 186,000 Maintenance expense-Factory equipment 17,800 Sales 23,800 Sales salaries expense 162,200 138,200 $ 678,900 237,400 55,800 11,800 63,000 994,000 24,000 28,800 76,600 39,000 4,515,100 394,600 Required:

Answer 1

LEONE COMPANY
Schedule of Cost of Goods Manufactured
For Year Ended December 31, 2019
Direct Materials:
Raw materials, December 31, 2018	$156,400
Add: Raw materials purchases	$994,000
Raw materials available for use	$1,150,400
Less: Raw materials, December 31, 2019	$186,000
Direct Materials used		$964,400
Direct labor		$678,900
Factory Overhead:
Depreciation expense — Factory equipment	$39,100
Factory supervision	$114,100
Factory supplies used	$8,800
Factory utilities	$39,000
Indirect labor	$55,800
Rent expense—Factory building	$76,600
Maintenance expense—Factory equipment	$39,000
Miscellaneous production costs	$11,800
Total factory overhead costs		$384,200
Total manufacturing costs        [$964,400 + $678,900 + $384,200]		$2,027,500
Add: Work in process, December 31, 2018		$17,800
Total Cost of work in Process		$2,045,300
Less: Work in process, December 31, 2019		$23,800
Cost of Goods Manufactured		$2,021,500

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	Number of units (a)	Cost per unit (b)	Total Cost (a x b)
Beginning inventory                                           (c)	1,800	$14	$25,200
Purchases during the year                                   (d)	36,000	$14	$504,000
Inventory available for sale                             (c + d)	37,800	$14	$529,200
Less: Inventory transferred into production	32,800 [16,400 boots x 2]	$14	$459,200
Ending inventory	5,000	$14	$70,000