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, 2017, adjusted trial balance and other records of Leone Company.

Advertising expense	$	29,900		Direct labor	$	679,200
Depreciation expenseOffice equipment		11,000		Income taxes expense		237,700
Depreciation expenseSelling equipment		9,700		Indirect labor		59,900
Depreciation expenseFactory equipment		34,900		Miscellaneous production costs		9,600
Factory supervision		111,300		Office salaries expense		68,000
Factory supplies used		9,500		Raw materials purchases		972,000
Factory utilities		41,000		Rent expenseOffice space		28,000
Inventories				Rent expenseSelling space		27,800
Raw materials, December 31, 2016		155,600		Rent expenseFactory building		78,300
Raw materials, December 31, 2017		192,000		Maintenance expenseFactory equipment		37,000
Work in process, December 31, 2016		16,300		Sales		4,535,300
Work in process, December 31, 2017		24,100		Sales salaries expense		390,200
Finished goods, December 31, 2016		169,200
Finished goods, December 31, 2017		143,100

2. Prepare the company's 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. LEONE COMPANY Income Statement For Year Ended December 31, 2017 Cost of goods sold Goods available for sale Cost of goods sold Operating expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total operating expenses Income before taxes Net income