The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company.

Advertising expense	$	32,400		Direct labor	$	676,400
Depreciation expenseOffice equipment		11,600		Income taxes expense		297,300
Depreciation expenseSelling equipment		10,600		Indirect labor		58,500
Depreciation expenseFactory equipment		36,900		Miscellaneous production costs		9,700
Factory supervision		109,600		Office salaries expense		61,000
Factory supplies used		8,600		Raw materials purchases		961,000
Factory utilities		43,000		Rent expenseOffice space		25,000
Inventories				Rent expenseSelling space		27,400
Raw materials, December 31, 2016		167,600		Rent expenseFactory building		80,400
Raw materials, December 31, 2017		179,000		Maintenance expenseFactory equipment		39,400
Work in process, December 31, 2016		15,100		Sales		4,616,200
Work in process, December 31, 2017		23,900		Sales salaries expense		394,800
Finished goods, December 31, 2016		164,800
Finished goods, December 31, 2017		142,800

Required: 1. Prepare the companys 2017 schedule of cost of goods manufactured.

2. Prepare the companys 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.

This is all of the information given.

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 $ U 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