Chapter 18

The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company.

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, 2019, 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 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 $ 27,600 Direct labor 9,000 Income taxes expense 9,500 Indirect labor 30,900 Miscellaneous production costs 147,600 Office salaries expense 7,700 Raw materials purchases 42,000 Rent expense-Office space Rent expense-Selling space 164,300 Rent expense-Factory building 178,000 Maintenance expense-Factory equipment 15,700 Sales 20,800 Sales salaries expense 166,800 144,600 $ 688,000 299, 200 59,300 11,900 64,000 994,000 24,000 27,100 82,800 39,700 4,615,000 394,600 Problem 18-3A Part 2 2. Prepare the company's 2019 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses LEONE COMPANY Income Statement For Year Ended December 31, 2019 Cost of goods sold Finished goods inventory, December 31, 2018 Cost of goods manufactured 166,800 166.800 Goods available for sale Less: Finished goods inventory, December 31, 2018 Cost of goods sold 166.800 (166,800) Operating expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total operating expenses Income before taxes (166.8.000 Net Income (166 800)