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 $206,770 $260,530 Work in process Finished goods Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment Direct labor 372,190 354,320 357,710 362,140 $176,900 25,010 33,610 401,220 Heat, light, and power-factory Indirect labor Materials purchased 13,290 46,900 393,400 Office salaries expense 137,300 Property taxes-factory 10,940 Property taxes-headquarters building 22,670 Rent expense-factory 18,500 Sales 1,841,950 Sales salaries expense 226,140 Supplies-factory Miscellaneous costs-factory 9,120 5,730 Required: 1. Prepare the 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 Less materials inventory, December 31, 2016 Cost of direct materials used 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 factory overhead Total manufacturing costs incurred Total manufacturing costs Less work in process inventory, December 31, 2016 Cost of goods manufactured 2. Prepare the income statement. Shanika Company Income Statement For the Year Ended December 31, 20Y6 Sales Cost of goods sold: Finished goods inventory, January 1, 2016 Cost of goods manufactured Cost of finished goods available for sale Less 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