Required information Problem 14-3A Schedule of cost of goods manufactured and in
ID: 2605533 • Letter: R
Question
Required information Problem 14-3A Schedule of cost of goods manufactured and income statement; inventory analysis LO P2, A1 The folowing Nnformaion apples to the questions desplayed below The following calendar year end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company s 25,960 Direct labor Advertising expense Deprecietion expense-ofrice equipeent Depreciation expense-Selling equipeent Degreciatian expense-Factory equippent Factory sopervision Factory SupoItes oserd Factory vtilities Iientorles 11.500 Incone taxes expense 9,000 Indirect labor 199 889 31,400 Miscellaneous preduction costs 128,700 Office salaries expense 9,400 Ran materials purchases 38,08 Rent expense-office space Rant expense-selling space Rar eaterlals, December 31, 2036 Rar eoterlals, Decenber 31. 2817 169,700 Rent expea-Factory building 192,000 isintenance expense-restory equipeent 76,300 39,400 4567,0e 9 k in eracess, Decebe . 2816 ork in pracess, Decerber 31: 2017 Enlebed sooos Decartr L 20 16,903 Sles 24.900 5sies salarães expense 105,800 136,500 oblem 14-3A Part 1 quiredExplanation / Answer
Answer:
1
Manufacturing Statement
For Year Ended December 31, 2016
Direct materials
Raw materials inventory, December 31, 2015
$169,700
Raw materials purchases
986,000
Raw materials available for use
1,155,700
Less: Raw materials inventory, December 31, 2016
192,000
Direct materials used
$963,700
Direct labor
675,000
Factory overhead
Factory supervision
128,700
Factory supplies used
9,400
Factory utilities
38,000
Maintenance expense—Factory equipment
39,400
Rent expense—Factory building
76,000
Depreciation expense—Factory equipment
31,400
Indirect labor
59,700
Miscellaneous production costs
9,100
Total factory overhead costs
391,700
Total manufacturing costs
2,030,400
Add: Goods in process inventory, December 31, 2015
16,900
Total cost of goods in process
2,047,300
Less: Goods in process inventory, December 31, 2016
24,900
Cost of goods manufactured
$2,022,400
2
LE LEON COMPANY
Income Statement
For Year Ended December 31, 2016
Sales
$4,567,000
Cost of goods sold
Cost of goods manufactured
$2,022,400
Finished goods inventory, December 31, 2015
165,800
Goods available for sale
2,188,200
Less: Finished goods inventory, December 31, 2016
136,500
Cost of goods sold
2,051,700
Gross profit from sales
2,515,300
Operating expenses
Selling expenses
Depreciation expense—Selling equipment
9,000
Rent expense—Selling space
28,300
Sales salaries expense
394,700
Advertising expense
25,900
Total selling expenses
457,900
General and administrative expenses
Rent expense—Office space
24,000
Office salaries expense
24,000
Depreciation expense—Office equipment
11,500
Total general and administrative expenses
59,500
Total operating expenses
517,400
Income before state and federal taxes
1,997,900
Less:Income taxes expense
293,400
Net income
$1,704,500
Note:
As some of the figure in the image is not legible so I have double zoom in but it may possible that figure might be differ but format and calculation is correct
Manufacturing Statement
For Year Ended December 31, 2016
Direct materials
Raw materials inventory, December 31, 2015
$169,700
Raw materials purchases
986,000
Raw materials available for use
1,155,700
Less: Raw materials inventory, December 31, 2016
192,000
Direct materials used
$963,700
Direct labor
675,000
Factory overhead
Factory supervision
128,700
Factory supplies used
9,400
Factory utilities
38,000
Maintenance expense—Factory equipment
39,400
Rent expense—Factory building
76,000
Depreciation expense—Factory equipment
31,400
Indirect labor
59,700
Miscellaneous production costs
9,100
Total factory overhead costs
391,700
Total manufacturing costs
2,030,400
Add: Goods in process inventory, December 31, 2015
16,900
Total cost of goods in process
2,047,300
Less: Goods in process inventory, December 31, 2016
24,900
Cost of goods manufactured
$2,022,400
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.