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 $ 27,100 Direct labor 11,600 Income taxes expense 9,600 Indirect labor 37,500 Miscellaneous production costs 127,400 office salaries expense 9,000 Raw materials purchases 31,000 Rent expense-office space Rent expense-Selling space 154,400 Rent expense-Factory building 181,000 Maintenance expense-Factory equipment 18,800 Sales 21,000 Sales salaries expense 161,200 136,800 674,500 293, 200 58,900 9,100 68,000 958,000 22,000 28,900 80,900 38,600 4,615,100 396,500 Required: 1. Prepare the company's 2019 schedule of cost of goods manufactured.

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 154400 958000 1112400 181000 9314001 674500 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 58900 9000 31000 127400 38600 37500 9100 809001 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 392400 1998300 18800 2017100 21000 1996100

LEONE COMPANY Income Statement For Year Ended December 31, 2019 Sales Cost of goods sold Cost of goods manufactured Add: Finished goods, December 31, 2018 4615100 1996100 161200 2157300 136800 Goods available for sale Less: Finished goods, December 31, 2019 Cost of goods sold Gross Profit from sale 2020500 2594600

Operating Expenses: l(a) Selling expense: Depreciation Expense - Selling equipment Rent expense - Selling space Sales Salaries expense Advertising expense 9600 28900 396500 27100 462100 Total selling Expense (b) General and administrative expenses: Depreciation expense - Office equipment Office salaries expense Rent expense - Office space 11600 68000 22000 Total general and administrative expenses Total operating expenses Income before taxes Income taxes expense Net Income 101600 563700 2030900 293200 1737700