The Schedule of Cost of Goods Manufactured

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 18, Problem 3APSA

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3APSA

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 909,850
Direct Labor		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs		$ 354,000
Total Manufacturing Cost		$ 1,942,330
Work in process , December 31, 2014		$ 15,700
Work in process , December 31, 2015		$ 19,380
Cost of Goods Manufactured		$ 1,938,650

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3APSA

Solution: The Income Statement for the year 2015 is as follows:

Leone Company
Income Statement
For the year 2015

Sales		$ 4,462,500
Cost of Goods Sold		$ 1,969,510
Gross Profit		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses		$ 92,250

Net Income before Taxes		$ 363,760
Taxes		$ 233,725
Net Income (F-G)		$ 130,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Leone Company
Income Statement
For the year 2015

Sales (A)		$ 4,462,500
Cost of Goods Sold (See working note) (B)		$ 1,969,510
Gross Profit (C) = A-B =		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses (D)		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses (E)		$ 92,250

Net Income before Taxes (F) = C-D-E =		$ 363,760
Taxes (G)		$ 233,725
Net Income (F-G)		$ 130,035

Working note:

Leone Company
Schedule of Cost of Goods Sold
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650
Finished Goods , December 31, 2014 (I)		$ 167,350
Finished Goods , December 31, 2015 (J)		$ 136,490
Cost of Goods Sold (K) =H+I-J		$ 1,969,510

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 2

Question

Chapter 18, Problem 3APSA

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3APSA

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 909,850
Direct Labor		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs		$ 354,000
Total Manufacturing Cost		$ 1,942,330
Work in process , December 31, 2014		$ 15,700
Work in process , December 31, 2015		$ 19,380
Cost of Goods Manufactured		$ 1,938,650

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3APSA

Solution: The Income Statement for the year 2015 is as follows:

Leone Company
Income Statement
For the year 2015

Sales		$ 4,462,500
Cost of Goods Sold		$ 1,969,510
Gross Profit		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses		$ 92,250

Net Income before Taxes		$ 363,760
Taxes		$ 233,725
Net Income (F-G)		$ 130,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Leone Company
Income Statement
For the year 2015

Sales (A)		$ 4,462,500
Cost of Goods Sold (See working note) (B)		$ 1,969,510
Gross Profit (C) = A-B =		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses (D)		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses (E)		$ 92,250

Net Income before Taxes (F) = C-D-E =		$ 363,760
Taxes (G)		$ 233,725
Net Income (F-G)		$ 130,035

Working note:

Leone Company
Schedule of Cost of Goods Sold
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650
Finished Goods , December 31, 2014 (I)		$ 167,350
Finished Goods , December 31, 2015 (J)		$ 136,490
Cost of Goods Sold (K) =H+I-J		$ 1,969,510

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 18, Problem 3APSA

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3APSA

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 909,850
Direct Labor		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs		$ 354,000
Total Manufacturing Cost		$ 1,942,330
Work in process , December 31, 2014		$ 15,700
Work in process , December 31, 2015		$ 19,380
Cost of Goods Manufactured		$ 1,938,650

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3APSA

Solution: The Income Statement for the year 2015 is as follows:

Leone Company
Income Statement
For the year 2015

Sales		$ 4,462,500
Cost of Goods Sold		$ 1,969,510
Gross Profit		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses		$ 92,250

Net Income before Taxes		$ 363,760
Taxes		$ 233,725
Net Income (F-G)		$ 130,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Leone Company
Income Statement
For the year 2015

Sales (A)		$ 4,462,500
Cost of Goods Sold (See working note) (B)		$ 1,969,510
Gross Profit (C) = A-B =		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses (D)		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses (E)		$ 92,250

Net Income before Taxes (F) = C-D-E =		$ 363,760
Taxes (G)		$ 233,725
Net Income (F-G)		$ 130,035

Working note:

Leone Company
Schedule of Cost of Goods Sold
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650
Finished Goods , December 31, 2014 (I)		$ 167,350
Finished Goods , December 31, 2015 (J)		$ 136,490
Cost of Goods Sold (K) =H+I-J		$ 1,969,510

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 18, Problem 3APSA

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3APSA

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 909,850
Direct Labor		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs		$ 354,000
Total Manufacturing Cost		$ 1,942,330
Work in process , December 31, 2014		$ 15,700
Work in process , December 31, 2015		$ 19,380
Cost of Goods Manufactured		$ 1,938,650

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3APSA

Solution: The Income Statement for the year 2015 is as follows:

Leone Company
Income Statement
For the year 2015

Sales		$ 4,462,500
Cost of Goods Sold		$ 1,969,510
Gross Profit		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses		$ 92,250

Net Income before Taxes		$ 363,760
Taxes		$ 233,725
Net Income (F-G)		$ 130,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Leone Company
Income Statement
For the year 2015

Sales (A)		$ 4,462,500
Cost of Goods Sold (See working note) (B)		$ 1,969,510
Gross Profit (C) = A-B =		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses (D)		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses (E)		$ 92,250

Net Income before Taxes (F) = C-D-E =		$ 363,760
Taxes (G)		$ 233,725
Net Income (F-G)		$ 130,035

Working note:

Leone Company
Schedule of Cost of Goods Sold
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650
Finished Goods , December 31, 2014 (I)		$ 167,350
Finished Goods , December 31, 2015 (J)		$ 136,490
Cost of Goods Sold (K) =H+I-J		$ 1,969,510

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 18, Problem 3APSA

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3APSA

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 909,850
Direct Labor		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs		$ 354,000
Total Manufacturing Cost		$ 1,942,330
Work in process , December 31, 2014		$ 15,700
Work in process , December 31, 2015		$ 19,380
Cost of Goods Manufactured		$ 1,938,650

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3APSA

Solution: The Income Statement for the year 2015 is as follows:

Leone Company
Income Statement
For the year 2015

Sales		$ 4,462,500
Cost of Goods Sold		$ 1,969,510
Gross Profit		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses		$ 92,250

Net Income before Taxes		$ 363,760
Taxes		$ 233,725
Net Income (F-G)		$ 130,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Leone Company
Income Statement
For the year 2015

Sales (A)		$ 4,462,500
Cost of Goods Sold (See working note) (B)		$ 1,969,510
Gross Profit (C) = A-B =		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses (D)		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses (E)		$ 92,250

Net Income before Taxes (F) = C-D-E =		$ 363,760
Taxes (G)		$ 233,725
Net Income (F-G)		$ 130,035

Working note:

Leone Company
Schedule of Cost of Goods Sold
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650
Finished Goods , December 31, 2014 (I)		$ 167,350
Finished Goods , December 31, 2015 (J)		$ 136,490
Cost of Goods Sold (K) =H+I-J		$ 1,969,510

Answer 6

Chapter 18, Problem 3APSA

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Requirement-1:

Expert Solution

Answer to Problem 3APSA

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 909,850
Direct Labor		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs		$ 354,000
Total Manufacturing Cost		$ 1,942,330
Work in process , December 31, 2014		$ 15,700
Work in process , December 31, 2015		$ 19,380
Cost of Goods Manufactured		$ 1,938,650

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650

Answer 7

Chapter 18, Problem 3APSA

Requirement-1:

To determine

To Prepare: The Schedule of Cost of Goods Manufactured

Answer 8

Requirement-1:

Expert Solution

Answer to Problem 3APSA

Solution: The Schedule of Cost of Goods Manufactured is as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Used		$ 909,850
Direct Labor		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs		$ 354,000
Total Manufacturing Cost		$ 1,942,330
Work in process , December 31, 2014		$ 15,700
Work in process , December 31, 2015		$ 19,380
Cost of Goods Manufactured		$ 1,938,650

Answer 9

Requirement-1:

Expert Solution

Answer 10

Requirement-1:

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:

Leone Company
Schedule of Cost of Goods Manufactured
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650

Answer 13

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Requirement-2:

Expert Solution

Answer to Problem 3APSA

Solution: The Income Statement for the year 2015 is as follows:

Leone Company
Income Statement
For the year 2015

Sales		$ 4,462,500
Cost of Goods Sold		$ 1,969,510
Gross Profit		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses		$ 92,250

Net Income before Taxes		$ 363,760
Taxes		$ 233,725
Net Income (F-G)		$ 130,035

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Leone Company
Income Statement
For the year 2015

Sales (A)		$ 4,462,500
Cost of Goods Sold (See working note) (B)		$ 1,969,510
Gross Profit (C) = A-B =		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses (D)		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses (E)		$ 92,250

Net Income before Taxes (F) = C-D-E =		$ 363,760
Taxes (G)		$ 233,725
Net Income (F-G)		$ 130,035

Working note:

Leone Company
Schedule of Cost of Goods Sold
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650
Finished Goods , December 31, 2014 (I)		$ 167,350
Finished Goods , December 31, 2015 (J)		$ 136,490
Cost of Goods Sold (K) =H+I-J		$ 1,969,510

Answer 14

Requirement-2:

To determine

To Prepare: The Income Statement for the year 2015

Answer 15

Requirement-2:

Expert Solution

Answer to Problem 3APSA

Solution: The Income Statement for the year 2015 is as follows:

Leone Company
Income Statement
For the year 2015

Sales		$ 4,462,500
Cost of Goods Sold		$ 1,969,510
Gross Profit		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses		$ 92,250

Net Income before Taxes		$ 363,760
Taxes		$ 233,725
Net Income (F-G)		$ 130,035

Answer 16

Requirement-2:

Expert Solution

Answer 17

Requirement-2:

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Explanation: The Income Statement for the year 2015 is prepared as follows:

Leone Company
Income Statement
For the year 2015

Sales (A)		$ 4,462,500
Cost of Goods Sold (See working note) (B)		$ 1,969,510
Gross Profit (C) = A-B =		$ 2,492,990

Selling Expenses:
Advertising Expenses	$ 28,750
Depreciation Expense-Selling Equipment	$ 8,600
Rent Expense-Selling Space	$ 26,100
Sales Salaries Expense	$ 392,560
Total Selling Expenses (D)		$ 456,010

General and Administrative Expenses:
Depreciation Expense-Office Equipment	$ 7,250
Office Salaries Expense	$ 63,000
Rent Expense-Office Space	$ 22,000
Total General and Administrative Expenses (E)		$ 92,250

Net Income before Taxes (F) = C-D-E =		$ 363,760
Taxes (G)		$ 233,725
Net Income (F-G)		$ 130,035

Working note:

Leone Company
Schedule of Cost of Goods Sold
For the year 2015

Raw Material Purchases (A)	$ 925,000
Raw Materials, December 31, 2014 (B)	$ 166,850
Raw Materials, December 31, 2015 (C)	$ 182,000
Raw Material Used (D) = A+B-C		$ 909,850
Direct Labor (E)		$ 678,480
Overhead Costs:
Depreciation Expense-Factory Equipment	$ 33,550
Factory Supervision	$ 102,600
Factory Supplies used	$ 7,350
Factory Utilities	$ 33,000
Indirect Labor	$ 56,875
Misc. Production Costs	$ 8,425
Rent Expense-Factory Building	$ 76,800
Maintenance Expense- Factory Equipment	$ 35,400
Total Overhead Costs (F)		$ 354,000
Total Manufacturing Cost (G) =D+E+F		$ 1,942,330
Work in process , December 31, 2014 (H)		$ 15,700
Work in process , December 31, 2015 (I)		$ 19,380
Cost of Goods Manufactured (H) = G+H-I		$ 1,938,650
Finished Goods , December 31, 2014 (I)		$ 167,350
Finished Goods , December 31, 2015 (J)		$ 136,490
Cost of Goods Sold (K) =H+I-J		$ 1,969,510