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 $ 25,300 Direct labor 9,600 Income taxes expense 9,900 Indirect labor 33,500 Miscellaneous production costs 104,500 Office salaries expense 9,000 Raw materials purchases 40,000 Rent expense-Office space Rent expense-Selling space 163,700 Rent expense-Factory building 190,000 Maintenance expense-Factory equipment 16,800 Sales 22,900 Sales salaries expense 165,900 137,500 $ 698,500 283,700 58,000 11,200 60,000 967,000 29,000 25,400 76,600 35,800 4,535,800 392,200 - LEONE COMPANY Income Statement For Year Ended December 31, 2019 Sales Cost of goods sold Finished goods inventory, December 31, 2018 Cost of goods manufactured $ 4,535,800 $ 165,900 165,900 165,900 4,369,900 Goods available for sale Less: Finished goods inventory, December 31, 2019 Cost of goods sold Gross profit from sales Operating expenses Selling expenses Depreciation expense-Office equipment Office salaries expense Rent expense-Office space 0 Total selling expenses General and administrative expenses Advertising expense Depreciation expense-Selling equipment Sales salaries expense Rent expense-Selling space 0 0 Total general and administrative expenses Total operating expenses Income before taxes Income taxes expense Net income 4,369,900 $ 4,369,900