Required information [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 Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Raw materials purchases (all direct materials) Maintenance expense-Factory equipment Factory utilities Direct labor Indirect labor Office salaries expense Rent expense-Office space Rent expense-Selling space Rent expense-Factory building Sales salaries expense $ 37,000 16,000 17,000 59,000 690,000 38,700 34,800 436,000 65,000 39,000 23,000 55,000 132,000 317,000 Using the following additional information for Leone Company, complete the requirements below. Raw materials inventory, beginning Raw materials inventory, ending Work in process inventory, beginning Sales Work in process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending Required: $ 138,000 143,000 41,000 2,331,000 45,000 57,000 65,000 1. Prepare the schedule of cost of goods manufactured for the current year. 2. Prepare the current year income statement. For Year Ended December 31 Direct materials Raw materials inventory, beginning Raw materials purchases Raw materials available for use Less: Raw materials inventory, ending Direct materials used Direct labor Factory overhead Depreciation expense-Factory equipment Maintenance expense-Factory equipment Factory utilities Indirect labor Rent expense-Factory building $ 138,000 690,000 828,000 143,000 $ 685,000 436,000 59,000 38,700 65,000 132,000 Total factory overhead Total manufacturing costs Add: Work in process inventory, beginning Total cost of work in process 294,700 1,415,700 41,000 1,456,700 Less: Work in process inventory, ending 45,000 Cost of goods manufactured $ 1,411,700 Sales For Year Ended December 31 $ 2,331,000 Cost of goods sold Finished goods inventory, beginning Cost of goods manufactured $ 57,000 Goods available for sale 57,000 Less: Finished goods inventory, ending 65,000 Cost of goods sold (8,000) 2,339,000 Gross profit Selling expenses General and administrative expenses Net income $ 2,339,000