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Required information [The following information applies to the questions displayed below.] The following calendar year-end information is taken from the December 31, 2019, adjusted trial
Required information
[The following information applies to the questions displayed below.]
The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company.
Advertising expense | $ | 34,700 | Direct labor | $ | 682,100 | ||
Depreciation expenseOffice equipment | 11,200 | Income taxes expense | 284,000 | ||||
Depreciation expenseSelling equipment | 10,000 | Indirect labor | 56,800 | ||||
Depreciation expenseFactory equipment | 39,300 | Miscellaneous production costs | 10,200 | ||||
Factory supervision | 135,400 | Office salaries expense | 62,000 | ||||
Factory supplies used | 9,600 | Raw materials purchases | 941,000 | ||||
Factory utilities | 34,000 | Rent expenseOffice space | 20,000 | ||||
Inventories | Rent expenseSelling space | 28,400 | |||||
Raw materials, December 31, 2018 | 166,100 | Rent expenseFactory building | 76,400 | ||||
Raw materials, December 31, 2019 | 189,000 | Maintenance expenseFactory equipment | 39,900 | ||||
Work in process, December 31, 2018 | 18,300 | Sales | 4,606,600 | ||||
Work in process, December 31, 2019 | 24,700 | Sales salaries expense | 397,700 | ||||
Finished goods, December 31, 2018 | 166,200 | ||||||
Finished goods, December 31, 2019 | 138,900 | ||||||
Required: 1. Prepare the companys 2019 schedule of cost of goods manufactured.
2. Prepare the companys 2019 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, 2019 Sales $ 4,606,600 Cost of goods sold 2,583,900 Goods available for sale 2,583,900 Cost of goods sold 2,583,900 2,022,700 Operating expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses 0 Total operating expenses Income before taxes 2,022,700 $ 2,022,700 Net income Required: 1. Prepare the company's 2019 schedule of cost of goods manufactured. LEONE COMPANY Schedule of Cost of Goods Manufactured For Year Ended December 31, 2019 Direct materials Raw materials inventory, December 31, 2018 166,100 941,000 Raw materials inventory, December 31, 2019 (189,000) Raw materials available for use 918,100 Add: Work in process inventory, December 31, 2018 682,100 Direct materials used $ 236,000 Factory overhead Total factory overhead costs 0 Total manufacturing costs 236,000 Total cost of work in process 236,000 Cost of goods manufactured $ 236,000Step by Step Solution
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