Required information Problem 143A Schedule of cost of goods

Required information Problem 14-3A Schedule of cost of goods manufactured and income statement; inventory analysis LO P2, A1 The folowing Nnformaion apples to the questions desplayed below The following calendar year end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company s 25,960 Direct labor Advertising expense Deprecietion expense-ofrice equipeent Depreciation expense-Selling equipeent Degreciatian expense-Factory equippent Factory sopervision Factory SupoItes oserd Factory vtilities Iientorles 11.500 Incone taxes expense 9,000 Indirect labor 199 889 31,400 Miscellaneous preduction costs 128,700 Office salaries expense 9,400 Ran materials purchases 38,08 Rent expense-office space Rant expense-selling space Rar eaterlals, December 31, 2036 Rar eoterlals, Decenber 31. 2817 169,700 Rent expea-Factory building 192,000 isintenance expense-restory equipeent 76,300 39,400 4567,0e 9 k in eracess, Decebe . 2816 ork in pracess, Decerber 31: 2017 Enlebed sooos Decartr L 20 16,903 Sles 24.900 5sies salarães expense 105,800 136,500 oblem 14-3A Part 1 quired

Solution

Answer:

1

Manufacturing Statement

For Year Ended December 31, 2016

Direct materials

Raw materials inventory, December 31, 2015

$169,700

Raw materials purchases

986,000

Raw materials available for use

1,155,700

Less: Raw materials inventory, December 31, 2016

192,000

Direct materials used

$963,700

Direct labor

675,000

Factory overhead

Factory supervision

128,700

Factory supplies used

9,400

Factory utilities

38,000

Maintenance expense—Factory equipment

39,400

Rent expense—Factory building

76,000

Depreciation expense—Factory equipment

31,400

Indirect labor

59,700

Miscellaneous production costs

9,100

Total factory overhead costs

391,700

Total manufacturing costs

2,030,400

Add: Goods in process inventory, December 31, 2015

16,900

Total cost of goods in process

2,047,300

Less: Goods in process inventory, December 31, 2016

24,900

Cost of goods manufactured

$2,022,400

2

LE LEON COMPANY

Income Statement

For Year Ended December 31, 2016

Sales

$4,567,000

Cost of goods sold

Cost of goods manufactured

$2,022,400

Finished goods inventory, December 31, 2015

165,800

Goods available for sale

2,188,200

Less: Finished goods inventory, December 31, 2016

136,500

Cost of goods sold

2,051,700

Gross profit from sales

2,515,300

Operating expenses

Selling expenses

Depreciation expense—Selling equipment

9,000

Rent expense—Selling space

28,300

Sales salaries expense

394,700

Advertising expense

25,900

Total selling expenses

457,900

General and administrative expenses

Rent expense—Office space

24,000

Office salaries expense

24,000

Depreciation expense—Office equipment

11,500

Total general and administrative expenses

59,500

Total operating expenses

517,400

Income before state and federal taxes

1,997,900

Less:Income taxes expense

293,400

Net income

$1,704,500

Note:

As some of the figure in the image is not legible so I have double zoom in but it may possible that figure might be differ but format and calculation is correct

Manufacturing Statement
For Year Ended December 31, 2016
Direct materials
Raw materials inventory, December 31, 2015	$169,700
Raw materials purchases	986,000
Raw materials available for use	1,155,700
Less: Raw materials inventory, December 31, 2016	192,000
Direct materials used		$963,700
Direct labor		675,000
Factory overhead
Factory supervision	128,700
Factory supplies used	9,400
Factory utilities	38,000
Maintenance expense—Factory equipment	39,400
Rent expense—Factory building	76,000
Depreciation expense—Factory equipment	31,400
Indirect labor	59,700
Miscellaneous production costs	9,100
Total factory overhead costs		391,700
Total manufacturing costs		2,030,400
Add: Goods in process inventory, December 31, 2015		16,900
Total cost of goods in process		2,047,300
Less: Goods in process inventory, December 31, 2016		24,900
Cost of goods manufactured		$2,022,400