The following year-end information is taken from the December 31 adjusted trial balance and other records of Leone Company. Advertising expense $ 59,000 Depreciation expense-Office equipment 38,000 Depreciation expense-Selling equipment 39,000 Depreciation expense-Factory equipment 81,000 Raw materials purchases (all direct materials) 910,000 Maintenance expense-Factory equipment 45,300 Factory utilities 39,200 Direct labor 524,000 Indirect labor 79,000 47,000 28,000 67,000 161,000 386,000 Office salaries expense Rent expense-Office space Rent expense-Selling space Rent expense-Factory building Sales salaries expense Required: Identify each cost as either a product cost or a period cost. If a product cost, classify it as direct materials, direct labor, or factory overhead. If a period cost, classify it as a selling expense or a general and administrative expense. (Leave no cell blank. Enter "NA - Not a product cost" or "NA - Not a period cost" for expenses that are not product cost or period cost.) Using the following additional information for Leone Company, complete the requirements below. Raw materials inventory, beginning $ 182,000 Raw materials inventory, ending Work in process inventory, beginning Sales Work in process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending 187,000 55,000 2,984,000 59,000 77,000 85,000 Required: 1. Prepare the schedule of cost of goods manufactured for the current year. 2. Prepare the current year income statement.
The following year-end information is taken from the December 31 adjusted trial balance and other records of Leone Company. Advertising expense $ 59,000 Depreciation expense-Office equipment 38,000 Depreciation expense-Selling equipment 39,000 Depreciation expense-Factory equipment 81,000 Raw materials purchases (all direct materials) 910,000 Maintenance expense-Factory equipment 45,300 Factory utilities 39,200 Direct labor 524,000 Indirect labor 79,000 47,000 28,000 67,000 161,000 386,000 Office salaries expense Rent expense-Office space Rent expense-Selling space Rent expense-Factory building Sales salaries expense Required: Identify each cost as either a product cost or a period cost. If a product cost, classify it as direct materials, direct labor, or factory overhead. If a period cost, classify it as a selling expense or a general and administrative expense. (Leave no cell blank. Enter "NA - Not a product cost" or "NA - Not a period cost" for expenses that are not product cost or period cost.) Using the following additional information for Leone Company, complete the requirements below. Raw materials inventory, beginning $ 182,000 Raw materials inventory, ending Work in process inventory, beginning Sales Work in process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending 187,000 55,000 2,984,000 59,000 77,000 85,000 Required: 1. Prepare the schedule of cost of goods manufactured for the current year. 2. Prepare the current year income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The following year-end information is taken from the
December 31 adjusted trial balance and other records
of Leone Company.
Advertising expense
$ 59,000
Depreciation expense-Office equipment 38,000
Depreciation expense-Selling equipment 39,000
Depreciation expense-Factory equipment 81,000
Raw materials purchases (all direct materials) 910,000
Maintenance expense-Factory equipment 45,300
39,200
524,000
79,000
47,000
28,000
67,000
161,000
386,000
Factory utilities
Direct labor
Indirect labor
Office salaries expense
Rent expense-Office space
Rent expense-Selling space
Rent expense-Factory building
Sales salaries expense
Required:
Identify each cost as either a product cost or a period
cost. If a product cost, classify it as direct materials,
direct labor, or factory overhead. If a period cost,
classify it as a selling expense or a general and
administrative expense. (Leave no cell blank. Enter "NA
- Not a product cost" or "NA - Not a period cost" for
expenses that are not product cost or period cost.)
Using the following additional information for Leone
Company, complete the requirements below.
Raw materials inventory, beginning
Raw materials inventory, ending
Work in process inventory, beginning
Sales
Work in process inventory, ending
Finished goods inventory, beginning
Finished goods inventory, ending
$ 182,000
187,000
55,000
2,984,000
59,000
77,000
85,000
Required:
1. Prepare the schedule of cost of goods manufactured
for the current year.
2. Prepare the current year income statement.
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