Prepare the company\'s 2013 income statement that reports separate categories fo
ID: 2421804 • Letter: P
Question
Prepare the company's 2013 income statement that reports separate categories for self expenses and general and administrative expensesPlease use the format in the second picture Problem 14-7A Manufacturing and income statements; inventory analysis LO P2 A1 The following information applies to the questions displayed below The following calendar year-end Iinformation is taken from the December 31, 2013, adjusted trial belance and other records of Deleon Company. S 696.200 268,000 S 34200 Direct labor 8,300 income taxes expense 10,200 Indirect labor 33,500 .900 Office salaries expense 58,500 10,800 63,000 984000 25,000 28.300 77000 35300 Fectory supervision Factory supplies used Faciory unites 8,000 Raw meteriels purcheses 35,000 Rent expense-Office spsce Rent expense-Selling space Rew materials, December 3 202 154,500 Rent expense-Factory building 128000 Meinenance expense Fectory eaupmenn December 3 203 ss. Deceroer 31, 202 200 Sees 20.000 Seies dscounts 67500 Saies salaries expense Goons 4830000 4 900 3700 Probliem 14-7A Part 1
Explanation / Answer
Manufacturing Statement Direct materials Add Raw Materials Inventory, December 31, 2012 154500 Raw Materials Purchases 984000 Raw materials available for use 1138500 Less Raw Materials Inventory, December 31, 2009 188000 Direct materials used 950500 Direct Labor 696200 Factory overhead Depreciation Expense-Factory Equipment 33500 Factory Supervision 118900 Factory Supplies Used 8000 Factory Utilities 35000 Indirect Labor 58500 Miscellaneous Production Costs 10800 Rent Expense-Factory Building 77000 Maintenance Expense-Factory Equipment 36100 Total factory overhead costs 377800 Total manufacturing costs 2024500 Add Goods in Process Inventory, December 31, 2012 19200 Total cost of goods in process 2043700 Less Goods in Process Inventory, December 31, 2013 20000 Cost of goods manufactured 2023700 Income Statement Sales 4630000 Sales Discounts 64900 Net sales 4565100 Cost of goods sold Add Finished Goods Inventory, December 31 2012 167500 Cost of Goods Manufactured 2023700 Goods available for sale 2191200 Less Finished Goods Inventory, December 31, 2013 143700 Cost of goods sold 2047500 Gross Profit from Sales 2517600 Operating expenses Selling expenses Advertising Expense 34200 Depreciation Expense-Selling Equipment 10200 Rent Expense-Selling Space 28300 Sales Salaries Expense 394300 Total selling expenses 467000 General and administrative expenses Depreciation Expense-Office Equipment 8300 Office Salaries Expense 63000 Rent Expense-Office Space 25000 Total general and administrative expenses 96300 Total operating expenses 563300 Income before state and federal taxes 1954300 Income Taxes Expense 268000 Net Income 1686300