Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company

The following information is available for Shanika Company for 20Y6:

Inventories	January 1		December 31
Materials	$345,170		$421,110
Work in process	621,310		572,710
Finished goods	597,140		585,340

Advertising expense	$285,930
Depreciation expense-office equipment	40,430
Depreciation expense-factory equipment	54,320
Direct labor	648,510
Heat, light, and power-factory	21,480
Indirect labor	75,800
Materials purchased	635,880
Office salaries expense	221,920
Property taxes-factory	17,690
Property taxes-headquarters building	36,640
Rent expense-factory	29,900
Sales	2,977,250
Sales salaries expense	365,520
Supplies-factory	14,740
Miscellaneous costs-factory	9,260

Required:

1. Prepare the 20Y6 statement of cost of goods manufactured.

Shanika Company
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 20Y6
Work in process inventory, January 1, 20Y6			$
Direct materials:
Materials inventory, January 1, 20Y6	$
Purchases
Cost of materials available for use	$
Materials inventory, December 31, 20Y6
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
Total factory overhead
Total manufacturing costs incurred in 20Y6
Total manufacturing costs			$
Work in process inventory, December 31, 20Y6
Cost of goods manufactured			$

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2. Prepare the 20Y6 income statement.

Shanika Company
Income Statement
For the Year Ended December 31, 20Y6
Sales			$
Cost of good sold:
Finished goods inventory, January 1, 20Y6		$
Cost of goods manufactured
Cost of finished goods available for sale		$
Finished goods inventory, December 31, 20Y6
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			$