.The following calendar year-end information is taken from December 31, 2017, adjusted trial balance and other records of Leone Company.
($) ($)
Advertising expense 29,900 Direct labor 673,500
Depreciation expense-Office equipment 11,600 Income taxes expense 262,800
Depreciation expense-Selling equipment 10,300 Indirect labor 58,000
Depreciation expense-Factory equipment 36,100 Miscellaneous production costs 11,400
Factory supervision 117,200 Office salaries expense 60,000
Factory supplies used 8,200 Raw materials purchases 999,000
Factory utilities 39,000 Rent expense-office space 25,000
Inventories Rent expense-Selling space 29,400
Raw materials, December 31, 2016 156,400 Rent expense-Factory building 77,600
Raw materials, December 31, 2017 184,000 Maintenance expense-Factory equipment 38,100
Work in process, December 31, 2016 19,500 Sales 4,596,100
Work in process, December 31, 2017 18,300 Sales salaries expense 393,400
Finished goods, December 31, 2016 163,800 Finished goods, December 31, 2017 142,100 Required:
1. Prepare the company's 2017 schedule of cost of goods manufactured.
2. Prepare the company's 2017 income statement that reports separate categories for (a) selling expenses and (b) general administrative expenses.