Question

Required information [The following information applies to the questions displayed below.) The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company $ 26, 800 9, 500 10, 100 31, 600 147,000 7, 800 31,000 Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Inventories Raw materials, December 31, 2018 Raw materials, December 31, 2019 Work in process, December 31, 2018 Work in process, December 31, 2019 Finished goods, December 31, 2018 Finished goods, December 31, 2019 Direct labor Income taxes expense Indirect labor Miscellaneous production costs Office salaries expense Raw materials purchases Rent expense-Office space Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment Sales Sales salaries expense $ 690, 500 248, 300 59, 100 11, 900 71,000 977, 000 24,000 27, 700 78, 800 39, 600 4, 585, 500 392, 800 176, 000 17, 800 20,000 161, 800 139, 200

Answer 1

Solution

LEONE COMPANY
Cost of Goods Manufactured
For year ended December 31 2019
Direct Material
Raw material Inventory Dec 31 2018	$    1,51,100.00
Raw material Purchased	$    9,77,000.00
Raw material available for use	$ 11,28,100.00
Less: Raw material Inventory December 31 2019	$    1,76,000.00
Direct Material Used		$   9,52,100.00
Direct labor		$   6,90,500.00
Factory Overheads
Factory Supervision	$    1,47,000.00
factory Supplies Used	$          7,800.00
Indirect labor	$        59,100.00
Rent- Factory Building	$        78,800.00
Maintenance - Factory Equipment	$        39,600.00
Depreciation - Factory Equipment	$        31,600.00
Miscelanious Production Cost	$        11,900.00
Factory Utilities	$        31,000.00
Total factory overheads		$   4,06,800.00
Total manufacturing Cost		$ 20,49,400.00
Add: Work in process December 31 2018		$       17,800.00
Total Work in process		20,67,200.00
Less: Work in progress december 31 2019		$       20,000.00
Cost of Goods Manufactured		$ 20,47,200.00

.

LEONE COMPANY
Income Statement
For the year ended December 31st 2019
Sales		$   45,85,500.00
Cost of Goods Sold
Finished Goods Inventory December 3 2018	$     1,61,800.00
Cost of goods Manufactured	$   20,47,200.00
Goods Avalable for sale	$   22,09,000.00
Finished Goods Inventory December 3 2019	$     1,39,200.00
Cost of Goods Sold		$   20,69,800.00
Gross Profit from Sales		$   25,15,700.00
Operating Expenses
Selling Expenses
Advertisement Expenses	$         26,800.00
Depreciation-Selling Equipment	$         10,100.00
Rent-Selling Space	$         27,700.00
Sales Salaries expenses	$     3,92,800.00
Total selling Expenses	$     4,57,400.00
General And Administrative Expenses
Depreciation-Office Equipment	$           9,500.00
Office Salaries Expenses	$         71,000.00
Rent expense- Office space	$         24,000.00
Total General and Administrative Expenses	$     1,04,500.00
Total Operating expenses		$     5,61,900.00
Income before tax		$   19,53,800.00
Income tax expense		$     2,48,300.00
Net income		$   17,05,500.00