Managerial Accounting Concepts Assignment

Managerial Accounting Concepts and Princes 663 following calendar year-end information is taken from December 31, 2017. adjusted trial balance and other records of Leone Company. Problem 14-2A Classifying costs Advertising expense 02 03 5 28.750 include production costs… 3425 Depreciation expense Office equipment……… 7.250 Orice sales expense. . 53.000 Depreciation expense-Selling equipment 8.500 Raw a s purchases… 925,000 Depreciation expense–Factory equipment ……. 33.550 Rent expense Office Space 22.000 Factory supervision 102.600 Bent expense-Selling space… 26.100 Factory supplies used… 7.350 Rent expense-Factory building………………… 76.800 Factory utilities …. 33.000 Maintenance expense-Factory c comment. .. Direct labor 575.480 Sales Indirect labore 56,875 Sales salaries expense……. 392.560 35.400 4.462,500

Required 1. Classify each cost as either a product or period cost. 2. Classify each product cost as either direct materials, direct labor, or factory overhead. 3. Classify each period cost as either selling expenses or general and administrative expenses. Using the data from Problem 14-2A and the following additional inventory information for Leone Company, complete the requirements below. Assume income tax expense is $233,725 for the year. Problem 14-3A Schedule of cost of goods manufactured and income statement: Inventory analysis P2 A1 Inventories Raw materials, December 31, 2016…. Raw materials, December 31, 2017…… Work in process, December 31, 2016 …. Work in process, December 31, 2017 … Finished goods, December 31, 2016. Finished goods, December 31, 2017… $166,850 182.000 15,700 19,380 167,350 136.490 Required 1. Prepare the company's 2017 schedule of cost of goods manufactured. Check (1) Cost of goods 2. Prepare the company's 2017 income statement that reports separate categories for (a) selling expenses manufactured. 51935,650 and (b) general and administrative expenses. Analysis Component 3. Compute the (a) inventory turnover, defined as cost of goods sold divided by average inventory, and (b) days' sales in inventory, defined as 365 times ending inventory divided by cost of goods sold, for both its raw materials inventory and its finished goods inventory. (To compute turnover and days' sales in inventory for raw materials, use raw materials used rather than cost of goods sold.) Discuss some possible reasons for the differences between these ratios for the two types of inventories. Round answers to one decimal place.