Required information The following information applies to th

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 $674,300 249,000 56,600 10,000 62,000 984,000 24,000 27,200 78,500 39,100 4,606,000 392,900 $32,300 Direct labor 10,800 Income taxes expense 10,800 Indirect labor 35,700 Miscellaneous production costs 108,500 Office salaries expense 7,900 Raw materials purchase 35,000 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 152,600 Rent expense-Factory building 188,000 Maintenance expense-Factory equipment 15,500 Sales 22,400 Sales salaries expense 163,800 137,200

Solution

Leone Company

Cost of Goods manufactured

for the year ended 31 December 2017

Direct Material

Raw material Inventory December 31 2016

$      152,600.00

Raw material Purchased

$      984,000.00

Raw material available for use

$ 1,136,600.00

Less: Raw material Inventory December 31 2017

$      188,000.00

Direct Material Used

$     948,600.00

Direct labor

$      674,300.00

Factory Overheads

Factory Supplies Used

$          7,900.00

Factory Utilities

$        35,000.00

Indirect labor

$        56,600.00

Factory Supervision

$      108,500.00

Depreciation Expenses-Factory Equipment

$        35,700.00

Rent Expenses-factory Building

$        78,500.00

Miscellaneous Factory Cost

$        10,000.00

Maintenance Expenses -factory Equipment

$        39,100.00

Total factory overheads

$      371,300.00

Total manufacturing Cost

$ 1,994,200.00

Add: Work in progress December 31 2016

$        15,500.00

Less: Work in progress December 31 2017

$        22,400.00

Cost of Goods Manufactured

$ 1,987,300.00

Leone Company

Income Statement

for the year ended 31 December 2017

Sales Revenue

$ 4,606,000.00

Less: Cost of Goods Sold

Opening Finished Goods Inventory

$      163,800.00

Cost of Goods manufactured

$ 1,987,300.00

Goods Available for sale

$ 2,151,100.00

Less: Closing Inventory of Finished Goods

$      137,200.00

Cost of Goods Sold

$ 2,013,900.00

Gross profit

$ 2,592,100.00

Operating Expenses

Selling Expenses

Depreciation Expenses-Selling Equipment

$        10,800.00

Rent Expense- Selling space

$        27,200.00

sales Salaries Expense

$      392,900.00

Total Selling Expenses

$      430,900.00

General and Administrative Expenses

Depreciation Expenses-Office Equipment

$        10,800.00

Rent Expense- Office Space

$        24,000.00

Office Salaries Expenses

$        62,000.00

Total General and Administrative Expenses

$        96,800.00

Total Operating Expenses

$      527,700.00

Income before Taxes

$ 2,064,400.00

Income tax Expense

$      249,000.00

Net Income

$ 1,815,400.00

Leone Company
Cost of Goods manufactured
for the year ended 31 December 2017
Direct Material
Raw material Inventory December 31 2016	$      152,600.00
Raw material Purchased	$      984,000.00
Raw material available for use	$ 1,136,600.00
Less: Raw material Inventory December 31 2017	$      188,000.00
Direct Material Used		$     948,600.00
Direct labor		$      674,300.00
Factory Overheads
Factory Supplies Used	$          7,900.00
Factory Utilities	$        35,000.00
Indirect labor	$        56,600.00
Factory Supervision	$      108,500.00
Depreciation Expenses-Factory Equipment	$        35,700.00
Rent Expenses-factory Building	$        78,500.00
Miscellaneous Factory Cost	$        10,000.00
Maintenance Expenses -factory Equipment	$        39,100.00
Total factory overheads		$      371,300.00
Total manufacturing Cost		$ 1,994,200.00
Add: Work in progress December 31 2016		$        15,500.00
Less: Work in progress December 31 2017		$        22,400.00
Cost of Goods Manufactured		$ 1,987,300.00