Required information [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 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 31,200 Direct labor 7,700 Income taxes expense 10,200 Indirect labor 39,400 Miscellaneous production costs 136,900 office salaries expense 9,000 Raw materials purchases 43,000 Rent expense-Office space Rent expense-selling space 161,000 Rent expense-Factory building 185,000 Maintenance expense-Factory equipment 18,400 Sales 23,100 Sales salaries expense 162,700 140, 800 $ 674,100 240,200 57,500 11,900 63,000 951,000 26,000 29,600 78,300 35,600 4,616,600 393,900 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 Direct materials used Factory overhead Total factory overhead costs Total manufacturing costs Total cost of work in process Cost of goods manufactured 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