Question

   

The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company.
   

Advertising expense	$	30,000		Direct labor	$	673,600
Depreciation expense—Office equipment		10,300		Income taxes expense		293,900
Depreciation expense—Selling equipment		10,300		Indirect labor		58,000
Depreciation expense—Factory equipment		31,700		Miscellaneous production costs		9,200
Factory supervision		126,300		Office salaries expense		75,000
Factory supplies used		9,300		Raw materials purchases		998,000
Factory utilities		40,000		Rent expense—Office space		23,000
Inventories				Rent expense—Selling space		26,000
Raw materials, December 31, 2018		164,300		Rent expense—Factory building		82,600
Raw materials, December 31, 2019		181,000		Maintenance expense—Factory equipment		38,100
Work in process, December 31, 2018		16,200		Sales		4,495,600
Work in process, December 31, 2019		23,300		Sales salaries expense		391,600
Finished goods, December 31, 2018		167,200
Finished goods, December 31, 2019		143,200

Required:
1. Prepare the company’s 2019 schedule of cost of goods manufactured.
  

Answer 1

		Leone Company
Schedule of Cost of Goods Manufactured
Direct materials
Raw materials inventory,Dec 31,2018						164,300
Raw materials purchases						998,000
Raw materials available for use						1,162,300
less:Raw materials inventory ,December 31,2019						181,000
Direct materials used							981,300
Direct labor							673,600
Factory overhead
Depreciation expense-factory equipment						31,700
Factory supervision						126,300
factory supplies used						9,300
Factory utilities						40,000
Rent expense- factory building						82,600
Maintenance expense-Factory equipment						38,100
Miscellaneous production costs						9,200
Indirect labor						58,000
total factory overhead costs							395,200
total manufacturing costs							2,050,100
Add:work in process inventory,dec 31,2018							16,200
total cost of work in process							2,066,300
less:work in process inventory ,december 31,2019							23,300
cost of goods manufactured							2,043,000