[The following information applies to the questions displayed below.] The follow

Question

[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.

Required:
1. Prepare the company’s 2017 schedule of cost of goods manufactured.

LEONE COMPANYSchedule of Cost of Goods ManufacturedFor Year Ended December 31, 2017Direct materialsRaw materials available for useDirect materials usedFactory overheadTotal factory overhead costsTotal manufacturing costsTotal cost of work in processCost of goods manufactured

Advertising expense $ 28,750 Direct labor $ 675,480 Depreciation expense—Office equipment 7,250 Income taxes expense 233,725 Depreciation expense—Selling equipment 8,600 Indirect labor 56,875 Depreciation expense—Factory equipment 33,550 Miscellaneous production costs 8,425 Factory supervision 102,600 Office salaries expense 63,000 Factory supplies used 7,350 Raw materials purchases 925,000 Factory utilities 33,000 Rent expense—Office space 22,000 Inventories Rent expense—Selling space 26,100 Raw materials, December 31, 2016 166,850 Rent expense—Factory building 76,800 Raw materials, December 31, 2017 182,000 Maintenance expense—Factory equipment 35,400 Work in process, December 31, 2016 15,700 Sales 4,462,500 Work in process, December 31, 2017 19,380 Sales salaries expense 392,560 Finished goods, December 31, 2016 167,350 Finished goods, December 31, 2017 136,490

Explanation / Answer

LEONE COMPANY Schedule of Cost of Goods Manufactured Raw Material Inventory, December 31, 2016 166850 Plus: Raw material purchases 925000 Raw material available for use 1091850 Less: Raw Material Inventory, December 31, 2016 182000 Raw material used in production 909850 Direct labor 675480 Manufacturing Overhead * 354000 Total manufacturing costs incurred 1939330 Plus: Work in process , December 31, 2016 15700 Total cost of work-in-process 1955030 Less: Work in process , December 31, 2017 19300 Cost of goods manufactured 1935730 Manufacturing Overhead: Depreciation - Factory Equipment 33550 Factory supervision 102600 Factory supplies 7350 Factory utilities 33000 Indirect labor 56875 Miscellaneous Production Costs 8425 Rent Expense - Factory building 76800 Maintenance Expense - Factory Equipment 35400 Total Manufacturing Overheads * 354000

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