Inventories January 1 December 31 Materials Work in process Finished goods $397,600715,680687,850$497,000675,920690,830 Advertising expense $337,460 Depreciation expense-office equipment 47,710 Depreciation expense-factory equipment 64,110 Direct labor 765,380 Heat, light, and power-factory 25,350 Indirect labor 89,460 Materials purchased Office salaries expense Property taxes-factory Property taxes-headquarters bullding Rent expense-factory Sales Sales salaries expense Supplies-factory Miscellaneous costs-factory Required: Work in process inventory, January 1, 20Y6 Direct materials: Factory overhead: Total factory overhead Total manufacturing costs incurred Total manufacturing costs Feedback T Check My Work 1. The cost of goods manufactured is the beginning work in process plus the Cost of direct materials used plus direct labor and factory overheless the ending work in process. Sales Cost of goods sold: Finished aoods inventory, January 1, 20Y6 6 Cost of goods manufactured =V Cost of finished goods avallable for sale Less finished goods inventory, December 31, 20Y6 Gross profit v Operating expenses: Administrative expenses: Dffice solarles expense v Property taxes-headquarters bullding Selling expenses: Advertising expense Sales salaries expense Total operating expenses Net income