1. Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company

The following information is available for Shanika Company for 20Y6:

Inventories	January 1	December 31
Materials	$386,720	$479,530
Work in process	696,100	652,160
Finished goods	669,030	666,550
Advertising expense		$325,600
Depreciation expense-office equipment		46,030
Depreciation expense-factory equipment		61,860
Direct labor		738,480
Heat, light, and power-factory		24,460
Indirect labor		86,320
Materials purchased		724,090
Office salaries expense		252,710
Property taxes-factory		20,140
Property taxes-headquarters building		41,720
Rent expense-factory		34,050
Sales		3,390,280
Sales salaries expense		416,230
Supplies-factory		16,780
Miscellaneous costs-factory		10,550

a. Prepare the statement of cost of goods manufactured.

b. Prepare the income statement.