E19-23 Preparing a schedule of cost of goods manufactured and an income statement Shaffer Company has the following information for the year ended December 31, 2016. Use the information to prepare a schedule of cost of goods manufactured and an income statement. Assume no indirect materials are used and all amounts are shown in millions. Inventories: Raw Materials Work-in-Process Finished Goods Beginning Ending $ 8 $ 9 14 19 4 11 Other information: Sales Revenue Selling and Administrative Expenses Direct Labor Manufacturing Overhead; actual and allocated Materials Purchases $228 64 46 16 25 Solution: SHAFFER COMPANY Schedule of Cost of Goods Manufactured Year Ended December 31, 2016 Beginning Work-in-Process Inventory (in millions) Sales Revenue SHAFFER COMPANY Income Statement Year Ended December 31, 2016 (in millions)