Shanika Company Income Statement For the Year Ended December 31, 2046 Sales Cost of good sold: Finished goods inventory, January 1, 2046 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 31, 2046 Cost of goods sold Gross profit Operating expenses: Administrative expenses: Office salaries expense Depreciation expense-office equipment Property taxes-headquarters building Selling expenses: Advertising expense Sales salaries expense Total operating expenses Net income 1. Prepare the 2016 statement of cost of goods manufactured. Shanika Company Statement of Cost of Goods Manufactured For the Year Ended December 31, 2016 Work in process inventory, January 1, 2046 Direct materials: Materials inventory, January 1, 2016 $ 305,890 Purchases 577,360 550,600 Cost of materials available for use 883,250 382,360 Materials inventory, December 31, 2016 Cost of direct materials used in production $ 500,890 588,830 68,820 49,320 Direct labor Factory overhead: Indirect labor Depreciation expense-factory equipment Heat, light, and power-factory Property taxes-factory Rent expense-factory Supplies-factory 19,500 16.060 27,150 13,380 Miscellaneous costs-factory 8,410 202.640 Total facton overheid 500,890 588,830 68,820 49,320 Cost of direct materials used in production Direct labor Factory overhead: Indirect labor Depreciation expense-factory equipment Heat, light, and power factory Property taxes-factory Rent expense-factory Supplies-factory Miscellaneous costs-factory 19,500 16,060 27,150 13,380 8,410 Total factory overhead 202,640 1,292,360 Total manufacturing costs incurred in 2046 Total manufacturing costs Work in process inventory, December 31, 2016 $ 1,842,960 520,010 $ 1,322,950 Cost of goods manufactured 2. Prepare the 20Y6 income statement. Home Sluierl For the Year Ended December 31, 2016 Sales $ 2,703,290 529,190 Cost of good sold: Finished goods inventory, January 1, 2016 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 31, 2046 1,322,950 1,852,140 531,480 Cost of goods sold 1,320,660 $ 1,382,630 $ 201,500 Gross profit Operating expenses: Administrative expenses: office salaries expense Depreciation expense-office equipment Property taxes-headquarters building Selling expenses: Advertising expense Sales salaries expense Total operating expenses Net income Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company The following information is available for Shanika Company for 2016: Inventories January 1 December 31 Materials $305,890 $382,360 Work in process 550,600 5 20,010 Finished goods 529,190 5 31,480 Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment Direct labor Heat, light, and power-factory Indirect labor Materials purchased Office salaries expense $259,620 36,710 49,320 588,830 19,500 68,820 577,360 201,500 16,060 33,270 27,150 Property taxes-factory Property taxes-headquarters building Rent expense-factory Sales Sales salaries expense 2,703,290 331,890 $259,620 36,710 49,320 588,830 19,500 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-headquarters building Rent expense-factory Sales Sales salaries expense Supplies-factory Miscellaneous costs-factory 68,820 577,360 201,500 16,060 33.270 27,150 2,703,290 331,890 13,380 8,410
