FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
15th Edition
ISBN: 9781265564483
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
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 | ||
$ 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 | $ 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
The financial statements of Sunland Manufacturing Company report net sales of $1277500 and accounts receivable of $71000 and $69000 at the beginning and end of the year, respectively. What is the average collection period for accounts receivable in days?
Accounting answer
Please help me solve this general accounting problem with the correct financial process.
Chapter 18 Solutions
FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
Ch. 18 - Prob. 1DQCh. 18 - Prob. 2DQCh. 18 - Prob. 3DQCh. 18 - Prob. 4DQCh. 18 - Prob. 5DQCh. 18 - Prob. 6DQCh. 18 - Prob. 7DQCh. 18 - Prob. 8DQCh. 18 - Prob. 9DQCh. 18 - Prob. 10DQ
Ch. 18 - Prob. 11DQCh. 18 - Prob. 12DQCh. 18 - Prob. 13DQCh. 18 - Prob. 14DQCh. 18 - Prob. 15DQCh. 18 - Prob. 16DQCh. 18 - Prob. 17DQCh. 18 - Prob. 18DQCh. 18 - Prob. 19DQCh. 18 - List the four components of a schedule of cost of...Ch. 18 - Prepare a proper title for the annual schedule of...Ch. 18 - Describe the relations among the income statement,...Ch. 18 - Prob. 23DQCh. 18 - Prob. 24DQCh. 18 - Prob. 25DQCh. 18 - Prob. 1QSCh. 18 - Prob. 2QSCh. 18 - Prob. 3QSCh. 18 - Classifying product costs C2 Identify each of the...Ch. 18 - Prob. 5QSCh. 18 - Prob. 6QSCh. 18 - Prob. 7QSCh. 18 - Prob. 8QSCh. 18 - Prob. 9QSCh. 18 - Prob. 10QSCh. 18 - Prob. 11QSCh. 18 - Prob. 12QSCh. 18 - Prob. 13QSCh. 18 - QS 18-17
Raw materials inventory...Ch. 18 - Prob. 1ECh. 18 - Prob. 2ECh. 18 - Prob. 3ECh. 18 - Prob. 4ECh. 18 - Prob. 5ECh. 18 - Prob. 6ECh. 18 - Prob. 7ECh. 18 - Prob. 8ECh. 18 - Prob. 9ECh. 18 - Prob. 10ECh. 18 - Prob. 11ECh. 18 - Prob. 12ECh. 18 - Prob. 13ECh. 18 - Prob. 14ECh. 18 - Prob. 15ECh. 18 - Prob. 16ECh. 18 - Prob. 17ECh. 18 - Prob. 1APSACh. 18 - Prob. 2APSACh. 18 - Prob. 3APSACh. 18 - Problem 18-4A Ending inventory computation and...Ch. 18 - Prob. 5APSACh. 18 - Prob. 1BPSBCh. 18 - Prob. 2BPSBCh. 18 - Prob. 3BPSBCh. 18 - Prob. 4BPSBCh. 18 - Prob. 5BPSBCh. 18 - Prob. 18SPCh. 18 - Prob. 1BTNCh. 18 - Prob. 2BTNCh. 18 - Prob. 3BTNCh. 18 - Prob. 4BTNCh. 18 - Prob. 5BTNCh. 18 - Prob. 6BTNCh. 18 - Prob. 7BTNCh. 18 - Prob. 8BTNCh. 18 - Prob. 9BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Laura estimates that his car costs $290 per month in fixed expenses, such as insurance and registration. Additionally, he calculates gas, oil, and maintenance at 16 cents per mile. Laura typically drives 1,250 miles each month on average. How much would Laura expect his total car costs to be in May if he drives 1,680 miles? help mearrow_forwardCorrect answer pleasearrow_forwardFinancial Accountingarrow_forward
- The total manufacturing costs added during the period are?arrow_forwardCash: 35000, Accounting receivable: 52000arrow_forwardThe actual cost of direct labor per hour is $16.25 and the standard cost of direct labor per hour is $15.00. The direct labor hours allowed per finished unit is 0.60 hours. During the current period, 4,500 units of finished goods were produced using 2,900 direct labor hours. How much is the direct labor rate variance? A. $3,625 favorable B. $3,625 unfavorable C. $4,350 favorable D. $4,350 unfavorablearrow_forward
- Please provide correct solution and accounting questionarrow_forwardA balance sheet shows cash, $75,000; marketable securities, $110,000; receivables, $90,000; and $225,000 of inventories. Current liabilities are $200,000. The current ratio is 1.375 to 1. a. True b. Falsearrow_forwardWhat is the economic order quantity?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education


Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,

Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON

Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
IAS 29 Financial Reporting in Hyperinflationary Economies: Summary 2021; Author: Silvia of CPDbox;https://www.youtube.com/watch?v=55luVuTYLY8;License: Standard Youtube License