PR 18-5A Statement of cost of goods manufactured and income statement for a OBJ. 2,3 manufacturing company The following information is available for The New Quest Corporation for 2016: Inventories January 1 December 31 Materials $351,000 $436,800 Work in process 631,800 592,800 Finished goods 608,400 576,000 Advertising expense $ 296,400 Depreciation expense-office equipment 42,120 Depreciation expense--factory equipment 56,160 Direct labor 670,800 Heat, light and power--factory 22.460 Indirect labor 78.750 Materials purchased 659.800 Office salaries expense 185,000 Property taxes---factory 18,500 Property taxes-office building 32.400 Rent expense-factory 32.000 Sales 3,010,000 Sales salaries expense 420,000 Supplies--factory 15,400 Miscellaneous costs-factory 9.500 Instructions 1. Prepare the 2016 statement of cost of goods manufactured. 2. Prepare the 2016 income statement. Question 1 THE NEWQUEST CORPORATION Statement of Cost of Goods Manufactured For the Year Ended December 31, 2016 Insert the appropriate number. Work in process inventory. January 1, 2016 Direct materials: Materials inventory, January 1, 2016 Purchases Cost of materials available for use Less materials investory, December 31, 2016 Cost of direct materials used in production Direct labor Factory overhead: Indirect bbor Depreciation expense factory equipment Heat, Liebt and power factory Property taxes--factory Real espeare factory Supplies--factory Miscellaneous cost factory Total factory overhead Total manufacturing costs incurred during the year Total manufacturing costs Less work in process investory. Dec.31.16 Cost of Foods manufactured B 9 0 1 2 3 4 5 26 27 09 30 31