The following calendar year-end information is taken from theDecember 31, 2017, adjusted trial balance and other records ofLeone Company.
Advertising expense $ 29,500 Depreciation expenseâOfficeequipment 8,250 Depreciation expenseâSellingequipment 10,900 Depreciation expenseâFactoryequipment 38,150 Factory supervision 104,460 Factory supplies used 11,350 Factory utilities 35,700 Direct labor 708,000 Indirect labor 64,800 Miscellaneous productioncosts 8,875 Office salaries expense 67,950 Raw materials purchases* 985,000 Rent expenseâOffice space 23,800 Rent expenseâSelling space 27,000 Rent expenseâFactorybuilding 79,600 Maintenance expenseâFactoryequipment 39,000 Sales 4,512,500 Sales salaries expense 409,360
*Assume that the raw materials inventory account is used onlyfor direct materials. Indirect materials are recorded in a factorysupplies account.
Required:
Classify each of the costs as either a product or period cost.Then, classify each of the product costs as either directmaterials, direct labor, or factory overhead and each of the periodcosts as either selling or general and administrative expenses.(Leave no cell blank.)
The following calendar year-end information is taken from theDecember 31, 2017, adjusted trial balance and other records ofLeone Company.
| Advertising expense | $ | 29,500 | |||||
| Depreciation expenseâOfficeequipment | 8,250 | ||||||
| Depreciation expenseâSellingequipment | 10,900 | ||||||
| Depreciation expenseâFactoryequipment | 38,150 | ||||||
| Factory supervision | 104,460 | ||||||
| Factory supplies used | 11,350 | ||||||
| Factory utilities | 35,700 | ||||||
| Direct labor | 708,000 | ||||||
| Indirect labor | 64,800 | ||||||
| Miscellaneous productioncosts | 8,875 | ||||||
| Office salaries expense | 67,950 | ||||||
| Raw materials purchases* | 985,000 | ||||||
| Rent expenseâOffice space | 23,800 | ||||||
| Rent expenseâSelling space | 27,000 | ||||||
| Rent expenseâFactorybuilding | 79,600 | ||||||
| Maintenance expenseâFactoryequipment | 39,000 | ||||||
| Sales | 4,512,500 | ||||||
| Sales salaries expense | 409,360 | ||||||
*Assume that the raw materials inventory account is used onlyfor direct materials. Indirect materials are recorded in a factorysupplies account.
Required:
Classify each of the costs as either a product or period cost.Then, classify each of the product costs as either directmaterials, direct labor, or factory overhead and each of the periodcosts as either selling or general and administrative expenses.(Leave no cell blank.)
Related questions
The following calendar year-end information is taken from theDecember 31, 2017, adjusted trial balance and other records ofLeone Company.
| Advertising expense | $ | 29,200 | Direct labor | $ | 694,600 | ||
| Depreciation expenseâOfficeequipment | 11,600 | Income taxes expense | 295,300 | ||||
| Depreciation expenseâSellingequipment | 10,300 | Indirect labor | 57,100 | ||||
| Depreciation expenseâFactoryequipment | 33,400 | Miscellaneous productioncosts | 10,500 | ||||
| Factory supervision | 126,900 | Office salaries expense | 62,000 | ||||
| Factory supplies used | 9,200 | Raw materials purchases | 929,000 | ||||
| Factory utilities | 40,000 | Rent expenseâOffice space | 29,000 | ||||
| Inventories | Rent expenseâSelling space | 27,100 | |||||
| Raw materials, December 31,2016 | 154,300 | Rent expenseâFactorybuilding | 80,700 | ||||
| Raw materials, December 31,2017 | 191,000 | Maintenance expenseâFactoryequipment | 37,000 | ||||
| Work in process, December 31,2016 | 18,600 | Sales | 4,585,200 | ||||
| Work in process, December 31,2017 | 24,200 | Sales salaries expense | 390,000 | ||||
| Finished goods, December 31,2016 | 161,000 | ||||||
| Finished goods, December 31,2017 | 143,100 | ||||||
Required:
1. Prepare the companyâs 2017 schedule of cost ofgoods manufactured.
