Required information

Problem 14-3A 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	$	33,800		Direct labor	$	690,000
Depreciation expenseOffice equipment		11,500		Income taxes expense		259,300
Depreciation expenseSelling equipment		9,700		Indirect labor		58,400
Depreciation expenseFactory equipment		37,500		Miscellaneous production costs		10,400
Factory supervision		115,900		Office salaries expense		62,000
Factory supplies used		9,500		Raw materials purchases		986,000
Factory utilities		35,000		Rent expenseOffice space		23,000
Inventories				Rent expenseSelling space		27,200
Raw materials, December 31, 2018		154,400		Rent expenseFactory building		80,800
Raw materials, December 31, 2019		178,000		Maintenance expenseFactory equipment		38,000
Work in process, December 31, 2018		15,000		Sales		4,465,600
Work in process, December 31, 2019		19,100		Sales salaries expense		398,700
Finished goods, December 31, 2018		163,400
Finished goods, December 31, 2019		137,800

Problem 14-3A Part 2

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