Manufacturing Company

The following information is available for Shanika Company for $20$Y$6$:

Inventories January $1$ December $31$

Materials $$318,920$ $$395,460$

Work in process $574,060537,830$

Finished goods $551,730549,690$

Line Item Description Amount

Advertising expense $$268,520$

Depreciation expense$-$office equipment $37,960$

Depreciation expense$-$factory equipment $51,010$

Direct labor $609,010$

Heat, light, and power$-$factory $20,170$

Indirect labor $71,180$

Materials purchased $597,140$

Office salaries expense $208,410$

Property taxes$-$factory $16,610$

Property taxes$-$headquarters building $34,410$

Rent expense$-$factory $28,080$

Sales $2,795,900$

Sales salaries expense $343,260$

Supplies$-$factory $13,840$

Miscellaneous costs$-$factory $8,700$

Required:

Question Content Area

$1.$ Prepare the $20$Y$6$ statement of cost of goods manufactured.

Shanika Company

Statement of Cost of Goods Manufactured

For the Year Ended December $31,20$Y$6$

Costs Type Amount Amount Amount

Work in process inventory, January $1,20$Y$6$

$Work in process inventory, January $1,20$Y$6$

$574,060$

Direct materials:

Materials inventory, January $1,20$Y$6$

$Materials inventory, January $1,20$Y$6$

$318,920$

Purchases

Purchases

$597,140$

Cost of materials available for use

$Cost of materials available for use

$916,060$

Materials inventory, December $31,20$Y$6$

Materials inventory, December $31,20$Y$6$

$-395,460$

Cost of direct materials used in production

$Cost of direct materials used in production

$520,600$

Direct labor

Direct labor

$609,010$

Factory overhead:

Materials inventory, January $1,20$Y$6$

$Materials inventory, January $1,20$Y$6$

$71,180$

Depreciation expense$-$factory equipment

Depreciation expense$-$factory equipment

$51,010$

Heat, light, and power$-$factory

Heat, light, and power$-$factory

$20,170$

Property taxes$-$factory

Property taxes$-$factory

$16,610$

Rent expense$-$factory

Rent expense$-$factory

$28,080$

Supplies$-$factory

Supplies$-$factory

$13,840$

Miscellaneous costs$-$factory

Miscellaneous costs$-$factory

$8,700$

Total factory overhead Total factory overhead

$209,590$

Total manufacturing costs incurred in $20$Y$6$ Total manufacturing costs incurred in $20$Y$6$

$1,339,200$

Total manufacturing costs $Total manufacturing costs

$1,913,260$

Work in process inventory, December $31,20$Y$6$

Work in process inventory, December $31,20$Y$6$

$-537,830$

Cost of goods manufactured

$Cost of goods manufactured

$1,375,430$

Question Content Area

$2.$ Prepare the $20$Y$6$ income statement.

Shanika Company

Income Statement

For the Year Ended December $31,20$Y$6$

Line Item Description Amount Amount Amount

Sales

$Sales

Cost of good sold:

Finished goods inventory, January $1,20$Y$6$

$Finished goods inventory, January $1,20$Y$6$

Cost of goods manufactured

Cost of goods manufactured

Cost of finished goods available for sale

$Cost of finished goods available for sale

Finished goods inventory, December $31,20$Y$6$

Finished goods inventory, December $31,20$Y$6$

Cost of goods sold

Cost of goods sold

Gross profit

$Gross profit

Operating expenses:

Administrative expenses:

Office salaries expense

$Office salaries expense

Depreciation expense$-$office equipment

Depreciation expense$-$office equipment

Property taxes$-$headquarters building

Property taxes$-$headquarters building

blank

Total administrative expenses blank $Total administrative expenses

blank

Selling expenses:

Advertising expense

$Advertising expense

Sales salaries expense

Sales salaries expense

blank

Total selling expenses blank Total selling expenses

blank

Total operating expenses Total operating expenses

Net income

$Net income