Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company The following information is available for Shanika Company for 20Y6: Inventories Materials Work in process Finished goods January 1 $361,310 650,360 625,070 December 31 $448,020 609,310 622,750 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 $304,210 43,010 57,790 689,950 22,850 80,640 676,510 236,110 18,820 38,980 31,810 3,167,500 388,880 Sales salaries expense Supplies-factory Miscellaneous costs-factory 388,880 15,680 9,860 ropdown ired: 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 $650,360 Direct materials: Materials inventory, January 1, 20Y6 Purchases Cost of materials available for use Materials inventory, December 31, 20Y6 $361,310 Cost of direct materials used in production Direct labor Factory overhead: Total factory overhead Total factory overhead Total manufacturing costs incurred in 20Y6 Total manufacturing costs Cost of goods manufactured 2. Prepare the 20Y6 income statement. Shanika Company Income Statement For the Year Ended December 31, 20Y6 Cost of good sold: Operating expenses Administrative expenses: Operating expenses: Selling expenses Total operating expenses Feedback Check My Work 2. Sales minus cost of goods sold equals gross profit. Gross profit minus operating expenses equals net income