Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 14-3A Schedule of cost of goods manufactured and income statement; inventory analysis CAP2 Using the data from Problem 14-2A and the following additional inventory

image text in transcribed
Problem 14-3A Schedule of cost of goods manufactured and income statement; inventory analysis CAP2 Using the data from Problem 14-2A and the following additional inventory information for Leone Company, complete the requirements below. Assume income tax expense is $233,725 for the year. Inventories Raw materials, December 31, 2018 $166,850 Raw materials, December 31, 2019 182,000 Work in process, December 31, 2018 15.700 Work in process, December 31, 2019 19.380 Finished goods, December 31, 2018 167.350 Finished goods, December 31, 2019 136,490 Required 1. Prepare the company's 2019 schedule of cost of goods manufactured. Check (1) Cost of goods manufactured, $1,935,650 2. Prepare the company's 2019 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. Analysis Component 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. Problem 14-3A Schedule of cost of goods manufactured and income statement; inventory analysis CAP2 Using the data from Problem 14-2A and the following additional inventory information for Leone Company, complete the requirements below. Assume income tax expense is $233,725 for the year. Inventories Raw materials, December 31, 2018 $166,850 Raw materials, December 31, 2019 182,000 Work in process, December 31, 2018 15.700 Work in process, December 31, 2019 19.380 Finished goods, December 31, 2018 167.350 Finished goods, December 31, 2019 136,490 Required 1. Prepare the company's 2019 schedule of cost of goods manufactured. Check (1) Cost of goods manufactured, $1,935,650 2. Prepare the company's 2019 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. Analysis Component 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

22nd Edition

324401841, 978-0-324-6250, 0-324-62509-X, 978-0324401844

More Books

Students also viewed these Accounting questions

Question

What distinguishes a jig from a fixture?

Answered: 1 week ago