Question

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The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company.
   

Advertising expense	$	27,100		Direct labor	$	699,900
Depreciation expense—Office equipment		11,100		Income taxes expense		244,500
Depreciation expense—Selling equipment		9,900		Indirect labor		55,900
Depreciation expense—Factory equipment		39,300		Miscellaneous production costs		10,600
Factory supervision		104,600		Office salaries expense		66,000
Factory supplies used		9,900		Raw materials purchases		962,000
Factory utilities		33,000		Rent expense—Office space		20,000
Inventories				Rent expense—Selling space		26,300
Raw materials, December 31, 2016		165,500		Rent expense—Factory building		77,700
Raw materials, December 31, 2017		185,000		Maintenance expense—Factory equipment		39,800
Work in process, December 31, 2016		18,200		Sales		4,625,300
Work in process, December 31, 2017		24,100		Sales salaries expense		393,700
Finished goods, December 31, 2016		168,600
Finished goods, December 31, 2017		138,100

Required:
1. Prepare the company’s 2017 schedule of cost of goods manufactured.
  

Answer 1

		Leone Company
Schedule of Cost of Goods Manufactured
Direct materials
Raw materials inventory,Dec 31,2016						165,500
Raw materials purchases						962,000
Raw materials available for use						1,127,500
less:Raw materials inventory ,December 31,2017						185,000
Direct materials used							942,500
Direct labor							699,900
Factory overhead
Depreciation expense-factory equipment						39,300
Factory supervision						104,600
factory supplies used						9,900
Factory utilities						33,000
Rent expense- factory building						77,700
Maintenance expense-Factory equipment						39,800
Miscellaneous production costs						10,600
Indirect labor						55,900
total factory overhead costs							370,800
total manufacturing costs							2,013,200
Add:work in process inventory,dec 31,2016							18,200
total cost of work in process							2,031,400
less:work in process inventory ,december 31,2017							24,100
cost of goods manufactured							2,007,300