Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company The following information is available for Shanika Company for 20Y6: January 1 December 31 Inventories Materials $285,460 $351,120 Work in process 513,830 477,520 Finished goods 493,850 488,060 Advertising expense $238,410 Depreciation expense-office equipment 33,710 Depreciation expense-factory equipment 45,290 Direct labor 540,720 Heat, light, and power-factory 17,910 Indirect labor 63,200 Materials purchased 530,190 Office salaries expense 185,040 Property taxes-factory 14,750 Property taxes-headquarters building 30,550 Rent expense-factory 24,930 Sales 2,482,420 Sales salaries expense 304,770 12,290 Supplies-factory Miscellaneous costs-factory Required: 2016 statement of 7,720 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, 2016 Direct materials: Materials inventory, January 1, 2016 285,460 Purchases 530,190 Cost of materials available for use 815,650 Materials inventory, December 31, 20Y6 351,120 Cost of direct materials used in production 116,770 Direct labor 540,720 Factory overhead: Indirect labor 63,200 Depreciation expense-factory equipment 45,290 Heat, light, and power-factory 17,910 Property taxes-factory 14,750 Rent expense-factory 24,930 Supplies-factory 12,290 Miscellaneous costs-factory Total factory overhead Total manufacturing costs incurred in 2016 Total manufacturing costs Work in process inventory, December 31, 20Y6 Cost of goods manufactured 7,720 186,090 513,830 843,580 477,520 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, 2016 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 493,850 2,482,420