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 $373,260 $466,580 Work in process 671,870 634,550 Finished goods 645,740 648,550 Advertising expense $316,810 Depreciation expense-office equipment 44,790 Depreciation expense-factory equipment 60,190 Direct labor 718,530 Heat, light, and power-factory 23,800 Indirect labor 83,980 Materials purchased 704,540 Office salaries expense 245,890 Property taxes-factory 19,600 Property taxes-headquarters building 40,590 Rent expense-factory 33,130 Sales 3,298,720 Sales salaries expense 404,990 Supplies-factory 16,330 Miscellaneous costs-factory 10,260 Required: Show Me How 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 373,260 704,540 1,077,800 466,580 671,870 13 10000 repare the 2016 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