Required information

Skip to question

[The following information applies to the questions displayed below.] The following year-end information is taken from the December 31 adjusted trial balance and other records of Leone Company.

Advertising expense	$ 28,750
Depreciation expenseOffice equipment	7,250
Depreciation expenseSelling equipment	8,600
Depreciation expenseFactory equipment	49,325
Raw materials purchases (all direct materials)	925,000
Maintenance expenseFactory equipment	35,400
Factory utilities	33,000
Direct labor	675,480
Indirect labor	159,475
Office salaries expense	63,000
Rent expenseOffice space	22,000
Rent expenseSelling space	26,100
Rent expenseFactory building	76,800
Sales salaries expense	392,560

Using the following additional information for Leone Company, complete the requirements below.

Raw materials inventory, beginning	$ 166,850
Raw materials inventory, ending	182,000
Work in process inventory, beginning	15,700
Sales	4,462,500
Work in process inventory, ending	19,380
Finished goods inventory, beginning	167,350
Finished goods inventory, ending	136,490

Required: 1. Prepare the schedule of cost of goods manufactured for the current year. 2. Prepare the current year income statement.