A) The following calendar year-end information is taken from the December 31, 2015, adjusted trial balance and other records of Leone Company
|
Advertising expense
|
$
|
28,750
|
|
Direct labor
|
$
|
675,480
|
|
|
Depreciation expense-Office equipment
|
|
7,250
|
|
Income taxes expense
|
|
233,725
|
|
|
Depreciation expense-Selling equipment
|
|
8,600
|
|
Indirect labor
|
|
56,875
|
|
|
Depreciation expense-Factory equipment
|
|
33,550
|
|
Miscellaneous production costs
|
|
8,425
|
|
|
Factory supervision
|
|
102,600
|
|
Office salaries expense
|
|
63,000
|
|
|
Factory supplies used
|
|
7,350
|
|
Raw materials purchases
|
|
925,000
|
|
|
Factory utilities
|
|
33,000
|
|
Rent expense-Office space
|
|
22,000
|
|
|
Inventories
|
|
|
|
Rent expense-Selling space
|
|
26,100
|
|
|
Raw materials, December 31, 2014
|
|
166,850
|
|
Rent expense-Factory building
|
|
76,800
|
|
|
Raw materials, December 31, 2015
|
|
182,000
|
|
Maintenance expense-Factory equipment
|
|
35,400
|
|
|
Work in process, December 31, 2014
|
|
15,700
|
|
Sales
|
|
4,462,500
|
|
|
Work in process, December 31, 2015
|
|
19,380
|
|
Sales salaries expense
|
|
392,560
|
|
|
Finished goods, December 31, 2014
|
|
167,350
|
|
|
|
|
|
|
Finished goods, December 31, 2015
|
|
136,490
|
|
|
B) Prepare the company's 2015 income statement that reports separate categories for (a) selling expenses and (b) general administrative expenses.