Question

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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	$	28,750		Direct labor	$	675,480
Depreciation expense—Office equipment		7,250		Income taxes expense		233,725
Depreciation expense—Selling equipment		8,600		Indirect labor		56,875
Depreciation expense—Factory equipment		33,550		Miscellaneous production costs		8,425
Factory supervision		102,600		Office salaries expense		63,000
Factory supplies used		7,350		Raw materials purchases		925,000
Factory utilities		33,000		Rent expense—Office space		22,000
Inventories				Rent expense—Selling space		26,100
Raw materials, December 31, 2016		166,850		Rent expense—Factory building		76,800
Raw materials, December 31, 2017		182,000		Maintenance expense—Factory equipment		35,400
Work in process, December 31, 2016		15,700		Sales		4,462,500
Work in process, December 31, 2017		19,380		Sales salaries expense		392,560
Finished goods, December 31, 2016		167,350
Finished goods, December 31, 2017		136,490

Required:
1. Prepare the company’s 2017 schedule of cost of goods manufactured.

LEONE COMPANYSchedule of Cost of Goods ManufacturedFor Year Ended December 31, 2017Direct materialsRaw materials available for useDirect materials usedFactory overheadTotal factory overhead costsTotal manufacturing costsTotal cost of work in processCost of goods manufactured

Answer 1

LEONE COMPANY
Schedule of Cost of Goods Manufactured
Raw Material Inventory, December 31, 2016	166850
Plus: Raw material purchases	925000
Raw material available for use	1091850
Less: Raw Material Inventory, December 31, 2016	182000
Raw material used in production	909850
Direct labor	675480
Manufacturing Overhead *	354000
Total manufacturing costs incurred	1939330
Plus: Work in process , December 31, 2016	15700
Total cost of work-in-process	1955030
Less: Work in process , December 31, 2017	19300
Cost of goods manufactured	1935730
Manufacturing Overhead:
Depreciation - Factory Equipment	33550
Factory supervision	102600
Factory supplies	7350
Factory utilities	33000
Indirect labor	56875
Miscellaneous Production Costs	8425
Rent Expense - Factory building	76800
Maintenance Expense - Factory Equipment	35400
Total Manufacturing Overheads *	354000