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	$	32,500		Direct labor	$	680,900
Depreciation expenseOffice equipment		9,700		Income taxes expense		239,800
Depreciation expenseSelling equipment		10,700		Indirect labor		56,200
Depreciation expenseFactory equipment		34,500		Miscellaneous production costs		9,800
Factory supervision		108,800		Office salaries expense		66,000
Factory supplies used		9,400		Raw materials purchases		996,000
Factory utilities		40,000		Rent expenseOffice space		26,000
Inventories				Rent expenseSelling space		29,100
Raw materials, December 31, 2018		155,100		Rent expenseFactory building		79,500
Raw materials, December 31, 2019		192,000		Maintenance expenseFactory equipment		39,700
Work in process, December 31, 2018		19,200		Sales		4,516,200
Work in process, December 31, 2019		18,100		Sales salaries expense		392,100
Finished goods, December 31, 2018		165,700
Finished goods, December 31, 2019		137,000

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.