
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question

Transcribed Image Text:The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone
Company.
Advertising expense
Depreciation expense-Office equipment
Depreciation expense-Selling equipment
Depreciation expense-Factory equipment
Factory supervision
Factory supplies used
Factory utilities
Direct labor
Indirect labor
Miscellaneous production costs
Office salaries expense
Raw materials purchases*
Rent expense-Office space
Rent expense-Selling space
Rent expense-Factory building
Maintenance expense-Factory equipment
Sales
Sales salaries expense
Costs
1. Advertising expense
2. Depreciation expense-Office equipment
3. Depreciation expense-Selling equipment
4. Depreciation expense-Factory equipment
$ 32,500
8,750
10,400
39,750
187,760
*Assume that the raw materials inventory account is used only for direct materials. Indirect materials are recorded in a factory supplies
account.
5. Factory supervision
6. Factory supplies used
Required:
Classify each of the costs as either a product or period cost. Then, classify each of the product costs as either direct materials, direct
labor, or factory overhead and each of the period costs as either selling or general and administrative expenses. (Leave no cell blank.)
7. Factory utilities
8. Direct labor
9. Indirect labor
10 Miscellaneous production costs
11. Office salaries expense
12 Raw materials purchases
13 Rent expense-Office space
14 Rent expense-Selling space
15. Rent expense-Factory building
16 Maintenance expense-Factory equipment
17 Sales
18 Sales salaries expense
7,600
33,600
684,000
66,600
8,650
69,600
955,000
25,000
31,800
80,800
39,000
4,662,500
392,560
Product Cost or
Period Cost
Type of Product Cost
Type of Period Cost
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Q.4. The following data were taken from the records of Al Nada Manufacturing Company for the year ended December 2020. (Amounts are given in OMR) 15,000 4,600 27,600 8,650 554,000 4,200 96,400 1,400 29,000 159,250 25,460 9,600 Factory Depreciation Factory Insurance Factory Utilities Office Utilities Net Sales Salesman's Salary Raw Materials Used Office Repairs Office Manager's Salary Direct Labor Indirect Labor Office Property Taxes Work in process inventory was OMR 18,900 at January 1 and OMR 18,600 at December 31. Finished goods inventory was OMR 95,900 on January 1 and OMR 96,000 on December 31. Instructions: (i) Compute the cost of goods sold. (ii) What is the difference between a merchandiser's balance sheet and a manufacturer's balance sheet.arrow_forwarda. Prepare a schedule of cost of goods manufactured. b. Prepare an income statement.arrow_forwardPlease do not give solution in image format thankuarrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education


Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,

Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON

Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education