Statement of cost of goods manufactured and income statement for a OBJ. 2, 3 manufacturing company The following information is available for The NewQuest Corporation for 2016:

Inventories January 1 December 31 Materials $351,000 $436,800 Work in process 631,800 592,800 Finished goods 608,400 576,000 Advertising expense $ 296,400 Depreciation expense—office equipment 42,120 Depreciation expense—factory equipment 56,160 Direct labor 670,800 Heat, light, and power—factory 22,460 Indirect labor 78,750 Materials purchased 659,800 Office salaries expense 185,000 Property taxes—factory 18,500 Property taxes—office building 32,400 Rent expense—factory 32,000 Sales 3,010,000 Sales salaries expense 420,000 Supplies—factory 15,400 Miscellaneous costs—factory 9,500 Instructions 1. Prepare the 2016 statement of cost of goods manufactured.

2. Prepare the 2016 income statement.