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Problem 18-3A Schedule of cost of goods manufactured and income statement; inventory analysis LO P2, A1
[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 | $ | 34,300 | | Direct labor | $ | 674,200 | |
| Depreciation expenseOffice equipment | | 9,800 | | Income taxes expense | | 289,900 | |
| Depreciation expenseSelling equipment | | 9,800 | | Indirect labor | | 56,000 | |
| Depreciation expenseFactory equipment | | 35,300 | | Miscellaneous production costs | | 10,900 | |
| Factory supervision | | 131,500 | | Office salaries expense | | 74,000 | |
| Factory supplies used | | 8,400 | | Raw materials purchases | | 930,000 | |
| Factory utilities | | 40,000 | | Rent expenseOffice space | | 25,000 | |
| Inventories | | | | Rent expenseSelling space | | 29,200 | |
| Raw materials, December 31, 2016 | | 167,600 | | Rent expenseFactory building | | 82,400 | |
| Raw materials, December 31, 2017 | | 185,000 | | Maintenance expenseFactory equipment | | 38,400 | |
| Work in process, December 31, 2016 | | 17,000 | | Sales | | 4,466,700 | |
| Work in process, December 31, 2017 | | 23,200 | | Sales salaries expense | | 396,600 | |
| Finished goods, December 31, 2016 | | 162,900 | | | | | |
| Finished goods, December 31, 2017 | | 141,200 | | | | | |
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Problem 18-3A Part 2
2. Prepare the companys 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.
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