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 $324,730 $396,170 Work in process Finished goods Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment Direct labor 584,510. 538,790 561,780 550,680 $269,000 38,030 51,110 610,100 Heat, light, and power-factory Indirect labor Materials purchased 20,200 71,310 598,220 Office salaries expense 208,780 Property taxes-factory 16,640 Property taxes-headquarters building 34,470 Rent expense-factory 28,130 Sales 2,800,920 Sales salaries expense 343,880 Rent expense-factory Sales Sales salaries expense Supplies-factory Miscellaneous costs-factory Required: 1. Prepare the statement of cost of goods manufactured. Shanika Company 28,130 2,800,920 343,880 13,870 8,720 Statement of Cost of Goods Manufactured For the Year Ended December 31, 20Y6 584,510 Work in process inventory, January 1, 2016 Direct materials: Materials inventory, January 1, 2016 324,730 Work in process inventory, December 31, 2016 X 598,220 Cost of goods sold X 922,950 Less work in process inventory, January 1, 2016 X 396,170 Indirect labor $26,780 Supplies-factory x 610,100 Factory overhead: Materials inventory, December 31, 2016 38,030 X Purchases X 30.300 Indirect labor Supplies-factory 526,780 610,100 Factory overhead: Materials inventory, December 31, 2016 38,030 X Purchases 20,200 X Materials inventory, December 31, 2016 71,310 X Property taxes-factory 16,640 Rent expense-factory Supplies-factory Miscellaneous costs-factory Total factory overhead Total manufacturing costs incurred Total manufacturing costs Less work in process inventory, December 31, 2016 Cost of goods manufactured 28,130 13,870 8,720 196,900 X 1,333,780 X 1,918,290 X 538,790 1,379,500 X 2. Prepare the income statement. Shanika Company Income Statement 2. Prepare the income statement. Shanika Company Income Statement For the Year Ended December 31, 20Y6 Sales Cost of goods sold: Office salaries expense Cost of goods manufactured 2,800,920 1,379,500 X 561,780 X Cost of finished goods available for sale 1,941,280 X Less finished goods inventory, December 31, 2016 550,680 V Cost of goods sold 1,390,600 X Sales 1,410,320 X Operating expenses: Administrative expenses: Office salaries expense Cost of goods sold x Property taxes-headquarters building 296,000 X 51,110 X 208,780 X 528,890 X Selling expenses: Cost of goods manufactured x 34,470 X 141.880 378,350 X Sales Cost of goods sold: Office salaries expense X Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, December 31, 2016 Cost of goods sold 1,379,500 X 561,780 X 1,941,280 X 550,680 Sales x Operating expenses: Administrative expenses: Office salaries expense Cost of goods sold x Property taxes-headquarters building Selling expenses: 296,000 X 51,110 X 208,780 X 528,890 X 2,800,920 1,390,600 X 1,410,320 X Cost of goods manufactured x 34,470 X Office salaries expense 343,880 378,350 X Total operating expenses 907,240 X Net income 503,080