Required information 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. $31,900 Direct labor 8,300 Income taxes expense 10,200 Indirect labor 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 33,700 Miscellaneous production costs 138, 900 office salaries expense 9,800 Raw materials purchases 31,000 Rent expense-office space Rent expense Selling space 159,400 Rent expense-Factory building 176,000 Maintenance expense-Factory equipment 17,900 Sales $ 691,700 238,400 57,700 9,400 73,000 956,000 23,000 26,800 80,800 36,400 4,585,600 391,200 20,100 Sales salaries expense 166,600 144,900 Problem 18-3A Part 1 Required: 1. Prepare the company's 2017 schedule of cost of goods manufactured. LEONE COMPANY Schedule of Cost of Goods Manufactured For Year Ended December 31, 2017 Direct materials Raw materials available for use | 0 Direct materials used | $ 0 Factory overhead Total factory overhead costs Total manufacturing costs Total cost of work in process Cost of goods manufactured Problem 18-3A Part 2 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