Required information Problem 18-3A Schedule of cost of goods manufactured and in

Question

Required information Problem 18-3A Schedule of cost of goods manufactured and income statement; inventory analysis LO P2, A1 [The following information applies to the questions displayed below.] The following calendar year-end information is taken from the December 31, 2017, 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 $697,000 244,600 55,400 11,300 62,000 949,000 23,000 27,800 81,000 38,000 4,585,700 393,400 $34,500 Direct labor 10,400 Income taxes expense 10,900 Indirect labor 36,300 Miscellaneous production costs 138,300 Office salaries expense 7,700 Raw materials purchases 45,000 Rent expense-office space Rent expense-Selling space Raw materials, December 31, 2016 Raw materials, December 31, 2017 Work in process, December 31, 2016 Work in process, December 31, 2017 Finished goods, December 31, 2016 Finished goods, December 31, 2017 167,900 Rent expense-Factory building 180,000 Maintenance expense-Factory equipment 17,700 Sales 24,800 Sales salaries expense 167,700 143,800

Explanation / Answer

Leone Company Income Statement For the Month Ended Dec 31, 2017 Sales Revenue Sales    4,585,700.00 Less: Cost of Goods Sold Finished Goods - Dec 31, 2016        167,900.00 Cost of Goods Manufactured    2,039,800.00 Goods Available for Sale    2,207,700.00 Less: Finished Good - Dec 31, 2017     (143,800.00) Cost of Goods Sold    2,063,900.00 Gross Margin    2,521,800.00 Less: Selling Expenses Advertising Expenses          34,500.00 Depreciation Expense - Selling Equip.          10,900.00 Rent Expenses - Selling space          27,800.00 Sales Salaries Expenses        393,400.00        466,600.00 Less: General & Administrative Expenses Depreciation Expense - Office Equip          10,400.00 Office Salaries Expenses          62,000.00 Rent Expenses - Office          23,000.00          95,400.00 Net Operating Income    1,959,800.00 Less: Income Tax        244,600.00 Net Income (Loss)    1,715,200.00 Statement of Cost of Goods Manufactured Direct Material Beginning Balance - Raw Material              167,900 Purchases              949,000 Goods Available for Production          1,116,900 Ending Balance - Raw Material           (180,000) Direct Material used in Production              936,900 Direct Labor              697,000 Manufacturing Overhead- Dep. Expenses - Factory Equipment                36,300 Factory Supervision              138,300 Factory Suplies Used                  7,700 Factory Utilities                45,000 Indirect labor                55,400 Misc. Production Costs                11,300 Rent Expenses - Factory Building                81,000 Maint. Exp. - Factory Equipment                38,000              413,000 Total Manufacturing Cost          2,046,900 Beginning WIP - Dec 31, 2016                17,700 Ending WIP - Dec 31, 2017              (24,800) Cost of Goods Manufactured          2,039,800

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