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.

Advertising expense	$25,800	Direct labor	$700,000
Depreciation expenseOffice equipment	11,500	Income taxes expense	278,200
Depreciation expenseSelling equipment	9,700	Indirect labor	55,300
Depreciation expenseFactory equipment	38,700	Miscellaneous production costs	10,600
Factory supervision	130,800	Office salaries expense	67,000
Factory supplies used	7,600	Raw materials purchases	952,000
Factory utilities	37,000	Rent expenseOffice space	24,000
Inventories		Rent expenseSelling space	28,100
Raw materials, December 31, 2016	154,900	Rent expenseFactory building	79,300
Raw materials, December 31, 2017	177,000	Maintenance expenseFactory equipment	37,400
Work in process, December 31, 2016	15,600	Sales	4,586,000
Work in process, December 31, 2017	18,400	Sales salaries expense	390,100
Finished goods, December 31, 2016	160,600
Finished goods, December 31, 2017	138,800

Problem 18-3A Part 1

Required: 1. Prepare the companys 2017 schedule of cost of goods manufactured.

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.

Advertising expense	$25,800	Direct labor	$700,000
Depreciation expenseOffice equipment	11,500	Income taxes expense	278,200
Depreciation expenseSelling equipment	9,700	Indirect labor	55,300
Depreciation expenseFactory equipment	38,700	Miscellaneous production costs	10,600
Factory supervision	130,800	Office salaries expense	67,000
Factory supplies used	7,600	Raw materials purchases	952,000
Factory utilities	37,000	Rent expenseOffice space	24,000
Inventories		Rent expenseSelling space	28,100
Raw materials, December 31, 2016	154,900	Rent expenseFactory building	79,300
Raw materials, December 31, 2017	177,000	Maintenance expenseFactory equipment	37,400
Work in process, December 31, 2016	15,600	Sales	4,586,000
Work in process, December 31, 2017	18,400	Sales salaries expense	390,100
Finished goods, December 31, 2016	160,600
Finished goods, December 31, 2017	138,800

Problem 18-3A Part 2

2. Prepare the companys 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.