The following calendar year-end information istaken 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 Direct labor Indirect labor Miscellaneous production costs Office salaries expense Raw materials purchases* Rent exp Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment Sales Sales salaries expense $30,250 9,500 9,900 37,550 108,360 8,850 37,500 693,000 74,200 8,875 65,200 935,000 29,800 30,900 76,800 38,100 4,712,500 402,160 ense Office space Assume that the raw materials inventory account is used only for direct materials. Indirect materials are recorded in a factory supplies account Required Classify each of the costs as either a product or period cost. Then, classify each of the product costs as either direct materials, direct labor, or factory overhead and each of the period costs as either selling or general and administrative expenses. (Leave no cell blank.) Product Cost or Period Cost Costs Type of Product Cost Type of Period Cost 1. Advertising expense 2. Depreciation expense-Office equipment 3. Depreciation expense-Selling equipment 4. Depreciation expense-Factory equipment 6. Factory supervision b. Factory supplies used 7. Factory utilities 8. Direct labor 9. Indirect labor 10 Miscellaneous production costs 11. Office salaries expense 12. Raw materials purchases 13. Rent expense-Office space 14. Rent expense-Selling space 15. Rent expense-Factory building 16. Maintenance expense-Factory equipment 17. Sales 18. Sales salaries expense The following calendar year-end information istaken 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 $27,700 Direct labor $680,50 8,100 Income taxes expense 236,100 57,50 10,100 70,000 978,000 23,00 29,000 77,900 37,900 9,500 Indirect labor 33,200 Miscellaneous production costs 122,900 Office salaries expense 8,100 Raw materials purchases 32,000 Rent expense-Office space Rent expense-Selling space 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 159,300 Rent expense-Factory building 189,000 Maintenance expense-Factory equipment 15,100 Sales 23,700 Sales salaries expense 4,485,40 394,200 161,700e 138,400 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 The following calendar year-end information istaken 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 $27,700 Direct labor $680,50 8,100 Income taxes expense 236,100 57,500 10,100 70,000 978,000 23,000 29,000 77,900 37,900 9,500 Indirect labor 33,200 Miscellaneous production costs 122,900 Office salaries expense 8,100 Raw materials purchases 32,000 Rent expense-Office space Rent expense-Selling space 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 159,300 Rent expense-Factory building 189,000 Maintenance expense-Factory equipment 15,100 Sales 23,700 Sales salaries expense 4,485,40 394,200 161,700 138,400 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