Using the data from Problem 1-2A and the following additional inventory information for Leone Company, complete the requirements below. Assume income tax expense is $233,725 for the year.

Required

1. Prepare the company?s 2019 schedule of cost of goods manufactured.

2. Prepare the company?s 2019 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.

3. Compute the (a) inventory turnover, defined as cost of goods sold divided by average inventory, and (b) days? sales in inventory, defined as 365 times ending inventory divided by cost of goods sold, for both its raw materials inventory and its finished goods inventory. (To compute turnover and days? sales in inventory for raw materials, use raw materials used rather than cost of goods sold.) Round answers to one decimal place.

Transcribed Image Text:

Inventories Raw materials, December 31, 2018.... Raw materials, December 31, 2019.. Work in process, December 31, 2018 Work in process, December 31, 2019..... Finished goods, December 31, 2018 Finished goods, December 31, 2019 $ 19,380 167,350 136,490 $166,850 182,000 15,700