1 answer

Required information [The following information applies to the questions displayed below.) The following calendar year-end information...

Question:

Required information [The following information applies to the questions displayed below.) The following calendar year-end inRequired: 1. Prepare the companys 2019 schedule of cost of goods manufactured. LEONE COMPANY Schedule of Cost of Goods ManufTotal factory overhead costs Total manufacturing costs Total cost of work in process Cost of goods manufacturedNazaros Boot Company makes specialty boots for the rodeo circuit. At year-end, the company had (a) 300 pairs of boots in fin

Required information [The following information applies to the questions displayed below.) The following calendar year-end information is taken from the December 31, 2019, 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 Inventories Raw materials, December 31, 2018 Raw materials, December 31, 2019 Work in process, December 31, 2018 Work in process, December 31, 2019 Finished goods, December 31, 2018 Finished goods, December 31, 2019 $ 32,400 Direct labor 8,100 Income taxes expense 10,200 Indirect labor 39,100 Miscellaneous production costs 114,100 Office salaries expense 8,800 Raw materials purchases 39,000 Rent expense-Office space Rent expense-Selling space 156, 400 Rent expense-Factory building 186,000 Maintenance expense-Factory equipment 17,800 Sales 23,800 Sales salaries expense 162,200 138,200 $ 678,900 237,400 55,800 11,800 63,000 994,000 24,000 28,800 76,600 39,000 4,515,100 394,600 Required:
Required: 1. Prepare the company's 2019 schedule of cost of goods manufactured. LEONE COMPANY Schedule of Cost of Goods Manufactured For Year Ended December 31, 2019 Direct materials Raw materials available for use Direct materials used Factory overhead
Total factory overhead costs Total manufacturing costs Total cost of work in process Cost of goods manufactured
Nazaro's Boot Company makes specialty boots for the rodeo circuit. At year-end, the company had (a) 300 pairs of boots in finished goods inventory and (b) 1,800 heels at a cost of $14 each in raw materials inventory. During the year, the company purchased 36,000 additional heels at $14 each and manufactured 16,400 pairs of boots. Required: 1. Determine the unit and dollar amounts of raw materials inventory in heels at year-end. Number of units Cost per unit Total cost Beginning inventory Purchases during the year Inventory available for production Less: Inventory transferred into production Ending inventory

Answers

LEONE COMPANY
Schedule of Cost of Goods Manufactured
For Year Ended December 31, 2019
Direct Materials:
          Raw materials, December 31, 2018 $156,400
          Add: Raw materials purchases $994,000
          Raw materials available for use $1,150,400
         Less: Raw materials, December 31, 2019 $186,000
         Direct Materials used $964,400
Direct labor $678,900
Factory Overhead:
        Depreciation expense — Factory equipment $39,100
        Factory supervision $114,100
        Factory supplies used $8,800
        Factory utilities             $39,000
        Indirect labor                                                              $55,800
        Rent expense—Factory building       $76,600
        Maintenance expense—Factory equipment $39,000
        Miscellaneous production costs $11,800
    Total factory overhead costs $384,200
Total manufacturing costs        [$964,400 + $678,900 + $384,200] $2,027,500
Add: Work in process, December 31, 2018 $17,800
Total Cost of work in Process $2,045,300
Less: Work in process, December 31, 2019 $23,800
Cost of Goods Manufactured $2,021,500

.

.

Number of units

(a)
Cost per unit

(b)
Total Cost

(a x b)
Beginning inventory                                           (c) 1,800 $14 $25,200
Purchases during the year                                   (d) 36,000 $14 $504,000
   Inventory available for sale                             (c + d)

37,800

$14 $529,200
Less: Inventory transferred into production

32,800

[16,400 boots x 2]

$14 $459,200
Ending inventory 5,000 $14 $70,000
.

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