Inventories Materials Work in process Finished goods January 1 $351,000 631,800 608,400 December 31 $436,800 592,800 576,000 Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment Direct labor Heat, light, and power-factory Indirect labor Materials purchased Office salaries expense Property taxes-factory Property taxes-office building Rent expense-factory Sales Sales salaries expense Suppliesfactory Miscellaneous costsfactory $ 296,400 42,120 56,160 670,800 22,460 78,750 659,800 185,000 18,500 32,400 32,000 3,010,000 420,000 15,400 9,500 THE NEWQUEST CORPORATION Statement of Cost of Goods Manufactured For the Year Ended December 31, 2016 Work in process inventory, January 1, 2016 Direct materials: Cost of direct materials used in production Direct labor Factory overhead: Total factory overhead Total manufacturing costs incurred during the year Total manufacturing costs Less: Cost of goods manufactured