The following calendar year end information is taken from the December 31 2017 a

Question

The following calendar year end information is taken from the December 31 2017 adjusted trial balance and other records of Leone company Help updates now or try tonight Check my work 1 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 $ 29,900 Direct labor $ 673,500 262,800 58,000 11,400 6,000 999,000 25,000 29,400 77,600 38,100 4,596,100 393,400 11,600 Income taxes expense 10,300 Indirect labor 36,100 Miscellaneous production costs 117,200 Office salaries expense 8,200 Raw materials purchases 39,000 Rent expense-office space 156,400 Rent expense-Factory building 19,500 Sales 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 Pinished goods, December 31, 2017 184,000 Maintenance expense-Factory equipment . 18,300 Sales salaries expense 163,800 142,100 Problem 18-3A Part 1 Required: 1. Prepare the company's 2017 schedule of cost of goods manufactured.

Explanation / Answer

LEONE COMPANY SCHEDULE OF COST OF GOODS MANUFACTURED For the year ended December 31, 2017 Direct materials: Raw materials inventory, December 31, 2016 156400 Raw material purchases 999000 Raw materials available for use 1155400 Less: Raw materials inventory, December 31, 2017 184000 Direct materials used 971400 Direct labor 673500 Factory overhead: Factory supervision 117200 Factory supplies used 8200 Factory utilities 39000 Maintenance expense-Factory equipment 38100 Rent expense-Factory building 77600 Depreciation expense-Factory equipment 36100 Indirect labor 58000 Miscellaneous production costs 11400 Total factory overhead costs 385600 Total manufacturing costs 2030500 Add: Goods in process inventory, December 31, 2016 19500 Total cost of goods in process 2050000 Less: Goods in process inventory, December 31, 2017 18300 Cost of goods manufactured 2031700 LEONE COMPANY INCOME STATEMENT For the year ended December31, 2017 Sales 4596100 Cost of goods sold: Cost of goods manufactured 2031700 Finished goods inventory, December 31, 2016 163800 Goods available for sale 2195500 Less: Finished goods inventory, December 31, 2017 142100 Cost of goods sold 2053400 Gross profit from sales 2542700 Operating expenses: Selling expenses: Depreciation expense-Selling equipment 10300 Rent expense-Selling space 29400 Sales salaries expense 393400 Advertising expense 29900 Total selling expenses 463000 General and administrative expenses: Rent expense-Office space 25000 Office salaries expense 60000 Depreciation expense-Office equipment 11600 Total general and administrative expenses 96600 Income before taxes 1983100 Income tax expense 262800 Net Income 1720300

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