The Schedule of Cost of Goods Manufactured

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 18, Problem 3APSA

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3APSA

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 909,850
Direct Labor		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs		$ 354,000
Total Manufacturing Cost		$ 1,942,330
Work in process , December 31, 2014		$ 15,700
Work in process , December 31, 2015		$ 19,380
Cost of Goods Manufactured		$ 1,938,650

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3APSA

Solution: The Income Statement for the year 2015 is as follows:

Leone Company
Income Statement
For the year 2015

Sales		$ 4,462,500
Cost of Goods Sold		$ 1,969,510
Gross Profit		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses		$ 92,250

Net Income before Taxes		$ 363,760
Taxes		$ 233,725
Net Income (F-G)		$ 130,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Leone Company
Income Statement
For the year 2015

Sales (A)		$ 4,462,500
Cost of Goods Sold (See working note) (B)		$ 1,969,510
Gross Profit (C) = A-B =		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses (D)		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses (E)		$ 92,250

Net Income before Taxes (F) = C-D-E =		$ 363,760
Taxes (G)		$ 233,725
Net Income (F-G)		$ 130,035

Working note:

Leone Company
Schedule of Cost of Goods Sold
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650
Finished Goods , December 31, 2014 (I)		$ 167,350
Finished Goods , December 31, 2015 (J)		$ 136,490
Cost of Goods Sold (K) =H+I-J		$ 1,969,510

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

? ? Financial accounting question

The income statement of a merchandising company includes Cost of Goods Sold (COGS) and gross profit, which are not found on a service company’s income statement. This is because merchandising companies sell physical products, while service companies provide intangible services. Service company income statements are simpler, usually showing revenue from services minus operating expenses like salaries, rent, and supplies. In short, the main difference is that merchandising firms track product costs and gross profit, while service companies do not. Respond to this post. agree or disagree

Please give me true answer this financial accounting question

Answer 2

Question

Chapter 18, Problem 3APSA

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3APSA

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 909,850
Direct Labor		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs		$ 354,000
Total Manufacturing Cost		$ 1,942,330
Work in process , December 31, 2014		$ 15,700
Work in process , December 31, 2015		$ 19,380
Cost of Goods Manufactured		$ 1,938,650

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3APSA

Solution: The Income Statement for the year 2015 is as follows:

Leone Company
Income Statement
For the year 2015

Sales		$ 4,462,500
Cost of Goods Sold		$ 1,969,510
Gross Profit		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses		$ 92,250

Net Income before Taxes		$ 363,760
Taxes		$ 233,725
Net Income (F-G)		$ 130,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Leone Company
Income Statement
For the year 2015

Sales (A)		$ 4,462,500
Cost of Goods Sold (See working note) (B)		$ 1,969,510
Gross Profit (C) = A-B =		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses (D)		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses (E)		$ 92,250

Net Income before Taxes (F) = C-D-E =		$ 363,760
Taxes (G)		$ 233,725
Net Income (F-G)		$ 130,035

Working note:

Leone Company
Schedule of Cost of Goods Sold
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650
Finished Goods , December 31, 2014 (I)		$ 167,350
Finished Goods , December 31, 2015 (J)		$ 136,490
Cost of Goods Sold (K) =H+I-J		$ 1,969,510

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 18, Problem 3APSA

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3APSA

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 909,850
Direct Labor		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs		$ 354,000
Total Manufacturing Cost		$ 1,942,330
Work in process , December 31, 2014		$ 15,700
Work in process , December 31, 2015		$ 19,380
Cost of Goods Manufactured		$ 1,938,650

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3APSA

Solution: The Income Statement for the year 2015 is as follows:

Leone Company
Income Statement
For the year 2015

Sales		$ 4,462,500
Cost of Goods Sold		$ 1,969,510
Gross Profit		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses		$ 92,250

Net Income before Taxes		$ 363,760
Taxes		$ 233,725
Net Income (F-G)		$ 130,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Leone Company
Income Statement
For the year 2015

Sales (A)		$ 4,462,500
Cost of Goods Sold (See working note) (B)		$ 1,969,510
Gross Profit (C) = A-B =		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses (D)		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses (E)		$ 92,250

Net Income before Taxes (F) = C-D-E =		$ 363,760
Taxes (G)		$ 233,725
Net Income (F-G)		$ 130,035

Working note:

Leone Company
Schedule of Cost of Goods Sold
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650
Finished Goods , December 31, 2014 (I)		$ 167,350
Finished Goods , December 31, 2015 (J)		$ 136,490
Cost of Goods Sold (K) =H+I-J		$ 1,969,510

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 18, Problem 3APSA

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3APSA

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 909,850
Direct Labor		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs		$ 354,000
Total Manufacturing Cost		$ 1,942,330
Work in process , December 31, 2014		$ 15,700
Work in process , December 31, 2015		$ 19,380
Cost of Goods Manufactured		$ 1,938,650

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3APSA

Solution: The Income Statement for the year 2015 is as follows:

Leone Company
Income Statement
For the year 2015

Sales		$ 4,462,500
Cost of Goods Sold		$ 1,969,510
Gross Profit		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses		$ 92,250

Net Income before Taxes		$ 363,760
Taxes		$ 233,725
Net Income (F-G)		$ 130,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Leone Company
Income Statement
For the year 2015

Sales (A)		$ 4,462,500
Cost of Goods Sold (See working note) (B)		$ 1,969,510
Gross Profit (C) = A-B =		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses (D)		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses (E)		$ 92,250

Net Income before Taxes (F) = C-D-E =		$ 363,760
Taxes (G)		$ 233,725
Net Income (F-G)		$ 130,035

Working note:

Leone Company
Schedule of Cost of Goods Sold
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650
Finished Goods , December 31, 2014 (I)		$ 167,350
Finished Goods , December 31, 2015 (J)		$ 136,490
Cost of Goods Sold (K) =H+I-J		$ 1,969,510

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 18, Problem 3APSA

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3APSA

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 909,850
Direct Labor		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs		$ 354,000
Total Manufacturing Cost		$ 1,942,330
Work in process , December 31, 2014		$ 15,700
Work in process , December 31, 2015		$ 19,380
Cost of Goods Manufactured		$ 1,938,650

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3APSA

Solution: The Income Statement for the year 2015 is as follows:

Leone Company
Income Statement
For the year 2015

Sales		$ 4,462,500
Cost of Goods Sold		$ 1,969,510
Gross Profit		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses		$ 92,250

Net Income before Taxes		$ 363,760
Taxes		$ 233,725
Net Income (F-G)		$ 130,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Leone Company
Income Statement
For the year 2015

Sales (A)		$ 4,462,500
Cost of Goods Sold (See working note) (B)		$ 1,969,510
Gross Profit (C) = A-B =		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses (D)		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses (E)		$ 92,250

Net Income before Taxes (F) = C-D-E =		$ 363,760
Taxes (G)		$ 233,725
Net Income (F-G)		$ 130,035

Working note:

Leone Company
Schedule of Cost of Goods Sold
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650
Finished Goods , December 31, 2014 (I)		$ 167,350
Finished Goods , December 31, 2015 (J)		$ 136,490
Cost of Goods Sold (K) =H+I-J		$ 1,969,510

Answer 6

Chapter 18, Problem 3APSA

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3APSA

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 909,850
Direct Labor		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs		$ 354,000
Total Manufacturing Cost		$ 1,942,330
Work in process , December 31, 2014		$ 15,700
Work in process , December 31, 2015		$ 19,380
Cost of Goods Manufactured		$ 1,938,650

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650

Answer 7

Chapter 18, Problem 3APSA

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Answer 8

Requirement-1:

Expert Solution

Answer to Problem 3APSA

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 909,850
Direct Labor		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs		$ 354,000
Total Manufacturing Cost		$ 1,942,330
Work in process , December 31, 2014		$ 15,700
Work in process , December 31, 2015		$ 19,380
Cost of Goods Manufactured		$ 1,938,650

Answer 9

Requirement-1:

Expert Solution

Answer 10

Requirement-1:

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650

Answer 13

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3APSA

Solution: The Income Statement for the year 2015 is as follows:

Leone Company
Income Statement
For the year 2015

Sales		$ 4,462,500
Cost of Goods Sold		$ 1,969,510
Gross Profit		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses		$ 92,250

Net Income before Taxes		$ 363,760
Taxes		$ 233,725
Net Income (F-G)		$ 130,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Leone Company
Income Statement
For the year 2015

Sales (A)		$ 4,462,500
Cost of Goods Sold (See working note) (B)		$ 1,969,510
Gross Profit (C) = A-B =		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses (D)		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses (E)		$ 92,250

Net Income before Taxes (F) = C-D-E =		$ 363,760
Taxes (G)		$ 233,725
Net Income (F-G)		$ 130,035

Working note:

Leone Company
Schedule of Cost of Goods Sold
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650
Finished Goods , December 31, 2014 (I)		$ 167,350
Finished Goods , December 31, 2015 (J)		$ 136,490
Cost of Goods Sold (K) =H+I-J		$ 1,969,510

Answer 14

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Answer 15

Requirement-2:

Expert Solution

Answer to Problem 3APSA

Solution: The Income Statement for the year 2015 is as follows:

Leone Company
Income Statement
For the year 2015

Sales		$ 4,462,500
Cost of Goods Sold		$ 1,969,510
Gross Profit		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses		$ 92,250

Net Income before Taxes		$ 363,760
Taxes		$ 233,725
Net Income (F-G)		$ 130,035

Answer 16

Requirement-2:

Expert Solution

Answer 17

Requirement-2:

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Leone Company
Income Statement
For the year 2015

Sales (A)		$ 4,462,500
Cost of Goods Sold (See working note) (B)		$ 1,969,510
Gross Profit (C) = A-B =		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses (D)		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses (E)		$ 92,250

Net Income before Taxes (F) = C-D-E =		$ 363,760
Taxes (G)		$ 233,725
Net Income (F-G)		$ 130,035

Working note:

Leone Company
Schedule of Cost of Goods Sold
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650
Finished Goods , December 31, 2014 (I)		$ 167,350
Finished Goods , December 31, 2015 (J)		$ 136,490
Cost of Goods Sold (K) =H+I-J		$ 1,969,510