Question

The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company. Advertising expense $ 26,100 Direct labor $ 695,700 Depreciation expense—Office equipment 12,000 Income taxes expense 277,000 Depreciation expense—Selling equipment 10,900 Indirect labor 59,000 Depreciation expense—Factory equipment 33,500 Miscellaneous production costs 10,600 Factory supervision 133,100 Office salaries expense 68,000 Factory supplies used 9,700 Raw materials purchases 953,000 Factory utilities 40,000 Rent expense—Office space 29,000 Inventories Rent expense—Selling space 28,400 Raw materials, December 31, 2018 169,600 Rent expense—Factory building 79,500 Raw materials, December 31, 2019 194,000 Maintenance expense—Factory equipment 37,800 Work in process, December 31, 2018 19,000 Sales 4,496,700 Work in process, December 31, 2019 19,400 Sales salaries expense 393,900 Finished goods, December 31, 2018 164,900 Finished goods, December 31, 2019 138,300 Required: 1. Prepare the company’s 2019 schedule of cost of goods manufactured.

Answer 1

1
Schedule of cost of goods manufactured
For Year Ended December 31, 2019
Direct materials
Raw materials inventory, December 31, 2018	169600
Raw materials purchases	953000
Raw materials available for use	1122600
Less: Raw materials inventory, December 31, 2019	194000
Direct materials used		928600
Direct labor		695700
Factory overhead
Factory supervision	133100
Factory supplies used	9700
Factory utilities	40000
Maintenance expense—Factory equipment	37800
Rent expense—Factory building	79500
Depreciation expense—Factory equipment	33500
Indirect labor	59000
Miscellaneous production costs	10600
Total factory overhead costs		403200
Total manufacturing costs		2027500
Add: Work in process inventory, December 31, 2018		19000
Total cost of goods in process		2046500
Less: Work in process inventory, December 31, 2019		19400
Cost of goods manufactured		2027100