The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and...


Advertising expense	$33,700	Direct labor	$680,700
Depreciation expense—Office equipment	11,300	Income taxes expense	262,500
Depreciation expense—Selling equipment	10,700	Indirect labor	57,100
Depreciation expense—Factory equipment	37,500	Miscellaneous production costs	11,100
Factory supervision	146,200	Office salaries expense	70,000
Factory supplies used	9,500	Raw materials purchases	992,000
Factory utilities	42,000	Rent expense—Office space	28,000
Inventories		Rent expense—Selling space	27,500
Raw materials, December 31, 2016	168,300	Rent expense—Factory building	78,000
Raw materials, December 31, 2017	192,000	Maintenance expense—Factory equipment	36,700
Work in process, December 31, 2016	15,800	Sales	4,486,400
Work in process, December 31, 2017	25,000	Sales salaries expense	393,700
Finished goods, December 31, 2016	167,100
Finished goods, December 31, 2017	144,800

3.6 Ratings (655 Votes)

Solution

LEONE COMPANY
Cost of Goods Manufactured
For year ended December 31 2017

Direct Material
Raw material Inventory december 31 2016	$ 168,300.00
Raw material Purchased	$ 992,000.00
Raw material available for use	$ 1,160,300.00
Less: Raw material Inventory December 31 2017	$ 192,000.00
Direct Material Used		$ 968,300.00
Direct labor		$ 680,700.00
Factory Overheads
Facrtory Supervision	$ 146,200.00
Factory Supplies Used	$ 9,500.00
Indirect labor	$ 57,100.00
Rent- Factory Building	$ 78,000.00
Maintenance - Factory Equipment	$ 36,700.00
Depreciation - Factory Equipment	$ 37,500.00
Miscelanious Production Cost	$ 11,100.00
Factory Utilities	$ 42,000.00
Total factory overheads		$ 418,100.00
Total manufacturing Cost		$ 2,067,100.00
Add: Work in progess december 31 2016		$ 15,800.00
Total cost of Work in process		$ 2,082,900.00
Less: Work in progress december 31 2017		$ 25,000.00
Cost of Goods Manufactured		$ 2,057,900.00

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