Question

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

Advertising expense	$	33,400		Direct labor	$	672,000
Depreciation expense—Office equipment		7,700		Income taxes expense		241,800
Depreciation expense—Selling equipment		10,000		Indirect labor		58,000
Depreciation expense—Factory equipment		37,700		Miscellaneous production costs		9,700
Factory supervision		134,900		Office salaries expense		62,000
Factory supplies used		9,000		Raw materials purchases		972,000
Factory utilities		36,000		Rent expense—Office space		21,000
Inventories				Rent expense—Selling space		29,200
Raw materials, December 31, 2018		158,300		Rent expense—Factory building		76,600
Raw materials, December 31, 2019		182,000		Maintenance expense—Factory equipment		37,300
Work in process, December 31, 2018		16,200		Sales		4,446,700
Work in process, December 31, 2019		24,200		Sales salaries expense		397,200
Finished goods, December 31, 2018		165,300
Finished goods, December 31, 2019		136,900

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

Answer 1

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

Leone Company
Schedule of Cost of goods Manufactured
For the year ended December 31, 2019
Direct Materials:
Raw materials inventory, Dec. 31, 2018	$158,300
Add: Raw material purchases	$972,000
Raw materials available for use	$1,130,300
Less: Raw material inventory, Dec. 31, 2019	($182,000)
Direct material used		$948,300
Direct labor		$672,000
Factory overhead:
Factory supervision	$134,900
Factory supplies used	$9,000
Factory utilities	$36,000
Maintenance expense-Factory equipment	$37,300
Rent Expense-Factory building	$76,600
Depreciation Expense-Factory Equipment	$37,700
Indirect Labor	$58,000
Miscellaneous production costs	$9,700
Total factory overhead costs		$399,200
Total manufacturing costs		$2,019,500
Add: Work in process inventory, Dec. 31, 2018		$16,200
Total cost of goods in process		$2,035,700
Less: Work in process inventory, Dec. 31, 2019		($24,200)
Cost of Goods Manufactured		$2,011,500