Problem 14-3A Schedule of cost of goods manufactured and income statement; inven
ID: 2605041 • Letter: P
Question
Problem 14-3A 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, 2015, adjusted trial balance and other records of Leone Company. $ 33,700 Advertising expense Depreclation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utlities Inventories Direct Inbor Income taxes expense 698,900 273,800 59,400 0,500 60,000 957000 28,000 25,200 79,000 35,500 4,536,000 8,600 0,700 8,100 Indirect labor Miscellaneous production costs Office salaries expense 144,300 9,600 Raw materials purchases 45,000 Rent expense-Office space Rent expense-Selling space Raw materlals, December 31,2014 Raw materials, December 31, 2015 Work in process, December 31, 2014 Work in process, December 31, 2015 Finished goods, December 31, 2014 Finished goods, December 31, 2015 64,200 Rent expense-Factory building 175.000 Maintenance expense-Factory equipment 15,400 Sales 20,100 Sales salaries expense 60,600 42,600 391,600Explanation / Answer
Answer:
1
LE LEON COMPANY
Manufacturing Statement
For Year Ended December 31, 2015
Direct materials
Raw materials inventory, December 31, 2014
$164,200
Raw materials purchases
957,000
Raw materials available for use
1,121,200
Less: Raw materials inventory, December 31, 2015
175,000
Direct materials used
$946,200
Direct labor
698,900
Factory overhead
Factory supervision
144,300
Factory supplies used
9,600
Factory utilities
45,000
Maintenance expense—Factory equipment
35,500
Rent expense—Factory building
79,000
Depreciation expense—Factory equipment
38,100
Indirect labor
59,400
Miscellaneous production costs
10,500
Total factory overhead costs
421,400
Total manufacturing costs
2,066,500
Add: Goods in process inventory, December 31, 2014
15,400
Total cost of goods in process
2,081,900
Less: Goods in process inventory, December 31, 2015
20,100
Cost of goods manufactured
$2,061,800
_______________________________________________
2
LE LEON COMPANY
Income Statement
For Year Ended December 31, 2015
Sales
$4,536,000
Cost of goods sold
Cost of goods manufactured
$2,061,800
Finished goods inventory, December 31, 2014
160,600
Goods available for sale
2,222,400
Less: Finished goods inventory, December 31, 2015
142,600
Cost of goods sold
2,079,800
Gross profit from sales
2,456,200
Operating expenses
Selling expenses
Depreciation expense—Selling equipment
10,700
Rent expense—Selling space
25,200
Sales salaries expense
391,600
Advertising expense
33,700
Total selling expenses
461,200
General and administrative expenses
Rent expense—Office space
28,000
Office salaries expense
60,000
Depreciation expense—Office equipment
8,600
Total general and administrative expenses
96,600
Total operating expenses
557,800
Income before state and federal taxes
1,898,400
Income taxes expense
273,800
Net income
$1,624,600
LE LEON COMPANY
Manufacturing Statement
For Year Ended December 31, 2015
Direct materials
Raw materials inventory, December 31, 2014
$164,200
Raw materials purchases
957,000
Raw materials available for use
1,121,200
Less: Raw materials inventory, December 31, 2015
175,000
Direct materials used
$946,200
Direct labor
698,900
Factory overhead
Factory supervision
144,300
Factory supplies used
9,600
Factory utilities
45,000
Maintenance expense—Factory equipment
35,500
Rent expense—Factory building
79,000
Depreciation expense—Factory equipment
38,100
Indirect labor
59,400
Miscellaneous production costs
10,500
Total factory overhead costs
421,400
Total manufacturing costs
2,066,500
Add: Goods in process inventory, December 31, 2014
15,400
Total cost of goods in process
2,081,900
Less: Goods in process inventory, December 31, 2015
20,100
Cost of goods manufactured
$2,061,800