Question

Problem 18-3A Schedule of cost of goods manufactured and income statement; inventory analysis LO P2, A1

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The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company.

Advertising expense	$	34,300		Direct labor	$	674,200
Depreciation expense—Office equipment		9,800		Income taxes expense		289,900
Depreciation expense—Selling equipment		9,800		Indirect labor		56,000
Depreciation expense—Factory equipment		35,300		Miscellaneous production costs		10,900
Factory supervision		131,500		Office salaries expense		74,000
Factory supplies used		8,400		Raw materials purchases		930,000
Factory utilities		40,000		Rent expense—Office space		25,000
Inventories				Rent expense—Selling space		29,200
Raw materials, December 31, 2016		167,600		Rent expense—Factory building		82,400
Raw materials, December 31, 2017		185,000		Maintenance expense—Factory equipment		38,400
Work in process, December 31, 2016		17,000		Sales		4,466,700
Work in process, December 31, 2017		23,200		Sales salaries expense		396,600
Finished goods, December 31, 2016		162,900
Finished goods, December 31, 2017		141,200

Problem 18-3A Part 2

2. Prepare the company’s 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.