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Using the data from Problem 18 2A and the following additional inventory information for Leone Company complete the requirements below Assume income tax expense

Using the data from Problem 18-2A and the following additional inventory information for Leone Company, complete the requirements below. Assume income tax expense is $233,725 for the year. Inventories Raw materials, December 31, 2016 . . . . . . . . . . . . . . . $166,850 Raw materials, December 31, 2017 . . . . . . . . . . . . . . . . 182,000 Work in process, December 31, 2016 . . . . . . . . . . . . . . . 15,700 Work in process, December 31, 2017 . . . . . . . . . . . . . . . 19,380 Finished goods, December 31, 2016 . . . . . . . . . . . . . . . 167,350 Finished goods, December 31, 2017 . . . . . . . . . . . . . . . 136,490 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 and administrative expenses. Analysis Component 3. Compute the (a) Inventory turnover, defined as cost of goods sold divided by average inventory, (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 differences between these ratios for the two types of inventories. Round answers to one decimal place.

Apr 08 2020 View more View Less

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