Questions 9-10 (of 10)> Save & Problem 14-3A Schedule of cost of goods manufactu
ID: 2330018 • Letter: Q
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Questions 9-10 (of 10)> Save & Problem 14-3A Schedule of cost of goods manufactured and income statement i nventory 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, 2015, adjusted trial balance and other records of Leone Company. Advertising expense $ 28.750 Direct labor $ 675.480 233 725 56,875 8.425 63000 925000 22000 26,100 76.800 35.400 equipment 7,250 Income taxes expense 8,600 Indirect labor Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory Factory supplies used 33,550 102.600 Miscellaneous production costs Office salaries exp Raw materials purchases 7.350 33.000 Rent expens Factory utilities Inventories Raw materials, December 31. 2014 Raw materiels, December 31, 2015 Work in process. Dece Work in process. December 31, 2015 Finished goods, Rent expens space 166.850 Rent expense-Fectory building 182 000 Mantenance expense-Factory equipment 15.700 Sales 19.380 r 31, 2014 3 Sales salares expense 392.560 31, 2014 31 2015Explanation / Answer
LEONE COMPANY
Manufacturing Statement
For Year Ended December 31, 2015
Direct materials
Raw materials inventory, December 31, 2014
166850
Raw materials purchases
925000
Raw materials available for use
1091850
Less: Raw materials inventory, December 31, 2015
182000
Direct materials used
909850
Direct labor
675480
Factory overhead:
Factory supervision
102600
Factory supplies used
7350
Factory utilities
33000
Maintenance expense—Factory equipment
35400
Rent expense—Factory building
76800
Depreciation expense—Factory equipment
33550
Indirect labor
56875
Miscellaneous production costs
8425
Total factory overhead costs
354000
Total manufacturing costs
1939330
Add: Goods in process inventory, December 31, 2014
15700
Total cost of goods in process
1955030
Less: Goods in process inventory, December 31, 2015
19380
Cost of goods manufactured
1935650
LEONE COMPANY
Income Statement
For Year Ended December 31, 2015
Sales
4462500
Cost of goods sold
Cost of goods manufactured
1,935,650
Finished goods inventory, December 31, 2014
167,350
Goods available for sale
2,103,000
Less: Finished goods inventory, December 31, 2015
136,490
Cost of goods sold
1,966,510
Gross profit from sales
2,495,990
Operating expenses
Selling expenses
Depreciation expense—Selling equipment
8,600
Rent expense—Selling space
26,100
Sales salaries expense
392,560
Advertising expense
28,750
Total selling expenses
456,010
General and administrative expenses
Rent expense—Office space
22,000
Office salaries expense
63,000
Depreciation expense—Office equipment
7,250
Total general and administrative expenses
92,250
Total operating expenses
548,260
Income before state and federal taxes
1,947,730
Income taxes expense
233,725
Net income
LEONE COMPANY
Manufacturing Statement
For Year Ended December 31, 2015
Direct materials
Raw materials inventory, December 31, 2014
166850
Raw materials purchases
925000
Raw materials available for use
1091850
Less: Raw materials inventory, December 31, 2015
182000
Direct materials used
909850
Direct labor
675480
Factory overhead:
Factory supervision
102600
Factory supplies used
7350
Factory utilities
33000
Maintenance expense—Factory equipment
35400
Rent expense—Factory building
76800
Depreciation expense—Factory equipment
33550
Indirect labor
56875
Miscellaneous production costs
8425
Total factory overhead costs
354000
Total manufacturing costs
1939330
Add: Goods in process inventory, December 31, 2014
15700
Total cost of goods in process
1955030
Less: Goods in process inventory, December 31, 2015
19380
Cost of goods manufactured
1935650
LEONE COMPANY
Income Statement
For Year Ended December 31, 2015
Sales
4462500
Cost of goods sold
Cost of goods manufactured
1,935,650
Finished goods inventory, December 31, 2014
167,350
Goods available for sale
2,103,000
Less: Finished goods inventory, December 31, 2015
136,490
Cost of goods sold
1,966,510
Gross profit from sales
2,495,990
Operating expenses
Selling expenses
Depreciation expense—Selling equipment
8,600
Rent expense—Selling space
26,100
Sales salaries expense
392,560
Advertising expense
28,750
Total selling expenses
456,010
General and administrative expenses
Rent expense—Office space
22,000
Office salaries expense
63,000
Depreciation expense—Office equipment
7,250
Total general and administrative expenses
92,250
Total operating expenses
548,260
Income before state and federal taxes
1,947,730
Income taxes expense
233,725
Net income
1,714,005Related Questions
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