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[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	$ 63,000
Depreciation expenseOffice equipment	42,000
Depreciation expenseSelling equipment	43,000
Depreciation expenseFactory equipment	85,000
Raw materials purchases (all direct materials)	950,000
Maintenance expenseFactory equipment	46,500
Factory utilities	40,000
Direct labor	540,000
Indirect labor	81,000
Office salaries expense	49,000
Rent expenseOffice space	29,000
Rent expenseSelling space	70,000
Rent expenseFactory building	168,000
Sales salaries expense	403,000

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

Raw materials inventory, beginning	$ 190,000
Raw materials inventory, ending	195,000
Work in process inventory, beginning	57,000
Sales	3,111,000
Work in process inventory, ending	61,000
Finished goods inventory, beginning	80,000
Finished goods inventory, ending	88,000

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

Prepare the schedule of cost of goods manufactured for the current year.

LEONE COMPANY
Schedule of Cost of Goods Manufactured
For Year Ended December 31
Direct materials
Raw materials available for use
Direct materials used
Factory overhead
Total factory overhead
Total manufacturing costs
Total cost of work in process
Cost of goods manufactured

Prepare the current year income statement.

LEONE COMPANY
Income Statement
For Year Ended December 31
Cost of goods sold
Goods available for sale
Cost of goods sold

Required: Identify each cost as either a product cost or a period cost. If a product cost, classify it as direct materials, direct labor, or factory overhead. If a period cost, classify it as a selling expense or a general and administrative expense. (Leave no cell blank. Enter "NA - Not a product cost" or "NA - Not a period cost" for expenses that are not product cost or period cost.)

Costs	Type of Product Cost	Type of Period Cost
1. Advertising expense
2. Depreciation expenseOffice equipment
3. Depreciation expenseSelling equipment
4. Depreciation expenseFactory equipment
5. Raw materials purchases (all direct materials)
6. Maintenance expenseFactory equipment
7. Factory utilities
8. Direct labor
9. Indirect labor
10. Office salaries expense
11. Rent expenseOffice space
12. Rent expenseSelling space
13. Rent expenseFactory building
14. Sales salaries expense