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 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 Finished goods, December 31, 2017 $ 31,900 Direct labor 7,800 Income taxes expense 10,500 Indirect labor 36,980 Miscellaneous production costs 106, 100 office salaries expense 9,000 Raw materials purchases 32,000 Rent expense-Office space Rent expense-Selling space 159,900 Rent expense-Factory building 180,000 Maintenance expense-Factory equipment 18,400 Sales 20,500 Sales salaries expense 164,600 142,400 $ 678,609 291,400 57,000 10,400 64,000 997,000 25,000 25,100 81,600 37,700 4,576,200 399,400 LEONE COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Finished goods inventory, December 31, 2016 $ Cost of goods manufactured $ 4,576,200 164,600 164,600 142,440 22,160 4,554,040 Goods available for sale Less: Finished goods inventory, December 31, 2017 Cost of goods sold Gross profit from sales Operating expenses Selling expenses Advertising expense Depreciation expense-Selling equipment Rent expense-Selling space Sales salaries expense 31,900 10,500 25,100 399,400 Advertising expense Depreciation expense-Selling equipment Rent expense-Selling space Sales salaries expense 31,900 10,500 25,100 399,400 466,900 Total selling expenses penses General and administrative expenses Depreciation expense-Office equipment Office salaries expense Rent expense-Office space 7,800 64,000 25,000 Total general and administrative expenses Total operating expenses Income before taxes Income taxes expense Net income 96,800 563,700 3,990,340 291,400 3,698,940 $