Requesting help with the steps/breakdown on solving the below problem. Problem 1
ID: 2447711 • Letter: R
Question
Requesting help with the steps/breakdown on solving the below problem.
Problem 14-7A Manufacturing and income statements; inventory analysis LO P2 A1
The following calendar year-end information is taken from the December 31, 2013, adjusted trial balance and other records of DeLeon Company.
Advertising expense
$28,600
Direct labor
$677,000
Depreciation expense—Office equipment
8,500
Income taxes expense
265,100
Depreciation expense—Selling equipment
10,200
Indirect labor
59,300
Depreciation expense—Factory equipment
34,100
Miscellaneous production costs
11,100
Factory supervision
117,800
Office salaries expense
73,000
Factory supplies used
9,200
Raw materials purchases
952,000
Factory utilities
41,000
Rent expense—Office space
23,000
Inventories
Rent expense—Selling space
25,500
Raw materials, December 31, 2012
166,100
Rent expense—Factory building
77,300
Raw materials, December 31, 2013
195,000
Maintenance expense—Factory equipment
39,000
Goods in process, December 31, 2012
16,200
Sales
4,670,000
Goods in process, December 31, 2013
20,200
Sales discounts
64,900
Finished goods, December 31, 2012
160,800
Sales salaries expense
396,900
Finished goods, December 31, 2013
139,600
1. Prepare the company’s 2013 manufacturing statement
DE LEON COMPANY
Manufacturing Statement
For Year Ended December 31, 2013
Direct materials
Raw materials available for use
0
Direct materials used
$0
Factory overhead
Total factory overhead costs
$0
Total manufacturing costs
$0
Total cost of goods in process
0
Cost of goods manufactured
$0
Advertising expense
$28,600
Direct labor
$677,000
Depreciation expense—Office equipment
8,500
Income taxes expense
265,100
Depreciation expense—Selling equipment
10,200
Indirect labor
59,300
Depreciation expense—Factory equipment
34,100
Miscellaneous production costs
11,100
Factory supervision
117,800
Office salaries expense
73,000
Factory supplies used
9,200
Raw materials purchases
952,000
Factory utilities
41,000
Rent expense—Office space
23,000
Inventories
Rent expense—Selling space
25,500
Raw materials, December 31, 2012
166,100
Rent expense—Factory building
77,300
Raw materials, December 31, 2013
195,000
Maintenance expense—Factory equipment
39,000
Goods in process, December 31, 2012
16,200
Sales
4,670,000
Goods in process, December 31, 2013
20,200
Sales discounts
64,900
Finished goods, December 31, 2012
160,800
Sales salaries expense
396,900
Finished goods, December 31, 2013
139,600
Explanation / Answer
Direct material Raw material Beginning 166100 Purchase 952000 Raw material for use 1118100 less:Raw material at end (195000) Raw material used 923100 Direct labor 677000 Factory overhead Depreciation -factory 34100 Factory supervision 117800 Factory supplies 9200 utilties 41000 Indirect labor 59300 Rent expense-factory 77300 Misc.Production cost 11100 maintenance expense-facotry 39000 Total Factory overhead 388800 Total manufacturing cost 1988900 Add:Beginning work in process 16200 Total ocst of goods in process 2005100 less:Work in process at end (20200) cost of goods manufactured 1984900
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.