Question: The following calendar year-end information is taken from the December 31, 2015, adjusted trial balance and other records of Leone Company.
|
|
|
|
|
|
|
|
| Advertising expense |
$ |
26,400 |
|
Direct labor |
$ |
687,100 |
|
| Depreciation expense Office equipment |
|
10,000 |
|
Income taxes expense |
|
272,000 |
|
| Depreciation expense Selling equipment |
|
10,500 |
|
Indirect labor |
|
58,200 |
|
| Depreciation expense Factory equipment |
|
36,500 |
|
Miscellaneous production costs |
|
11,100 |
|
| Factory supervision |
|
130,700 |
|
Office salaries expense |
|
61,000 |
|
| Factory supplies used |
|
9,200 |
|
Raw materials purchases |
|
925,000 |
|
| Factory utilities |
|
38,000 |
|
Rent expense Office space |
|
28,000 |
|
| Inventories |
|
|
|
Rent expense Selling space |
|
28,200 |
|
| Raw materials, December 31, 2014 |
|
161,000 |
|
Rent expense Factory building |
|
78,400 |
|
| Raw materials, December 31, 2015 |
|
189,000 |
|
Maintenance expense Factory equipment |
|
37,400 |
|
| Work in process, December 31, 2014 |
|
17,500 |
|
Sales |
|
4,495,400 |
|
| Work in process, December 31, 2015 |
|
19,500 |
|
Sales salaries expense |
|
395,900 |
|
| Finished goods, December 31, 2014 |
|
169,300 |
|
|
|
|
|
| Finished goods, December 31, 2015 |
|
141,100 |
|
1. Prepare the company's 2015 schedule of cost of goods manufactured.
2. Prepare the company's 2015 income statement that reports separate categories for
(a) selling expenses and
(b) general and administrative expenses.