The Darwin Company reports the following information:
Sales $76,500 Direct materials used 7,300 Depreciation on factory equipment 4,700 Indirect labor 5,900 Direct labor 10,500 Factory rent 4,200 Factory utilities 1,200 Sales salaries expense 15,600 Office salaries expense 8,900 Indirect materials 1,200
Product costs are
a.$29,200
b.$24,500
c.$30,300
d.$35,000
The Darwin Company reports the following information:
| Sales | $76,500 |
| Direct materials used | 7,300 |
| Depreciation on factory equipment | 4,700 |
| Indirect labor | 5,900 |
| Direct labor | 10,500 |
| Factory rent | 4,200 |
| Factory utilities | 1,200 |
| Sales salaries expense | 15,600 |
| Office salaries expense | 8,900 |
| Indirect materials | 1,200 |
Product costs are
a.$29,200
b.$24,500
c.$30,300
d.$35,000
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.
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.)
Problem 18-3A Schedule of cost of goods manufactured and income statement; inventory analysis LO P2, A1
[The following information applies to the questions displayed below.]
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 expenseâOffice equipment | 9,800 | Income taxes expense | 289,900 | ||||
| Depreciation expenseâSelling equipment | 9,800 | Indirect labor | 56,000 | ||||
| Depreciation expenseâFactory 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 expenseâOffice space | 25,000 | ||||
| Inventories | Rent expenseâSelling space | 29,200 | |||||
| Raw materials, December 31, 2016 | 167,600 | Rent expenseâFactory building | 82,400 | ||||
| Raw materials, December 31, 2017 | 185,000 | Maintenance expenseâFactory 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 companyâs 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.
