part A.)

part B.)

Shanlka Company Statement of Cost of Goods Manufactured For the Year Ended December 31, 20 Y6 Work in process inventory, January 1,20Y6 Direct materials: Materials inventory, January 1,20Y6 Purchases Cost of materials available for use Less materials inventory, December 31,20Y6 Direct labor direct materials used Cost Factory overhead: Indirect labor Depreciation expense-factory equipment Heat, light, and power-factory Property taxes-factory Rent expense-factory Supplies-factory Miscellaneous costs-factory Total factory overhead Classifying Costs The following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc. Evaluate and correct this report. Operating expenses: Administrative expenses: Depreciation expense-office equipment Property taxes-headquarters bulilding Selling expenses: \begin{tabular}{ll} Advertising expense & \\ Sales salaries expense & \\ & \end{tabular} $ $ Total operating expenses Net income \begin{tabular}{|c|c|c|} \hline Inventorles & January 1 & December 31 \\ \hline Materials & $251,910 & $314,890 \\ \hline Work in process & 453,440 & 428,250 \\ \hline Finished goods & 435,800 & 437,700 \\ \hline Advertising expense & & $213,810 \\ \hline Depreciation expense-office equipment & & 30,230 \\ \hline Depreciation expense-factory equipment & & 40,620 \\ \hline Direct labor & & 484,930 \\ \hline Heat, light, and power-factory & & 16,060 \\ \hline Indirect labor & & 56,680 \\ \hline Materials purchased & & 475,480 \\ \hline Office salaries expense & & 165,950 \\ \hline Property taxes-factory & & 13,230 \\ \hline Property taxes-headquarters building & & 27,400 \\ \hline Rent expense-factory & & 22,360 \\ \hline Sales & & 2,226,270 \\ \hline Sales salaries expense & & 273,320 \\ \hline Supplies-factory & & 11,020 \\ \hline Miscellaneous co & & 6,930 \\ \hline \end{tabular} Total factory overhead Total manufacturing costs incurred Total manufacturing costs Less work in process inventory, December 31,20y6 Cost of goods manufactured 2. Prepare the income statement. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Cost of direct materials used in production Direct labor Factory overhead: Maintenance salaries Insurance and property taxes-plant Deapreciation-plant and equipment Total mant, and power