Required information Use the following information for the Problems below. (Algo) [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 $ 48,000 27,000 28,000 70,000 800,000 42,000 37,000 480,000 72,000 43,000 26,000 62,000 149,000 358,000 Problem 14-3A (Algo) Schedule of cost of goods manufactured and income statement LO P1, P2 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 $ 160,000 165,000 48,000 2,670,000 52,000 67,000 75,000 Required: 1. Prepare the schedule of cost of goods manufactured for the current year. 2. Prepare the current year income statement. LEONE COMPANY Schedule of Cost of Goods Manufactured For Year Ended December 31 Direct materials Raw materials inventory, beginning Raw materials purchases $ 160,000 800,000 960,000 165,000 $ 795,000 480,000 Raw materials available for use Less: Raw materials inventory, ending Direct materials used Direct labor Factory overhead Indirect labor Factory utilities Maintenance expense-Factory equipment Depreciation expense-Factory equipment Less: Raw materials inventory, ending Direct materials used Direct labor Factory overhead Indirect labor Factory utilities Maintenance expense-Factory equipment Depreciation expenseFactory equipment Rent expenseFactory building 72,000 37,000 42,000 70,000 165,000 $ 795,000 480,000 72,000 37,000 42,000 70,000 149,000 370.000 1,645,000 48,000 Total factory overhead Total manufacturing costs Add: Work in process inventory, beginning Total cost of work in process Less: Work in process inventory, ending Cost of goods manufactured 1,693,000 52,000 1,641,000 $ LEONE COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Cost of goods manufactured Finished goods inventory, beginning $ 2,670,000 0 Goods available for sale Less: Finished goods inventory, ending Cost of goods sold Gross profit Selling expenses 0 2,670,000 Net income $ 2,670,000