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 Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment Direct labor Heat, light, and power-factory January 1 December 31 $77,350 $95,550 109,200 96,200 113,750 100,100 $68,250 22,750 14,560 186,550 5,850 Indirect labor Materials purchased 23,660 123,500 Office salaries expense 77,350 Property taxes-factory 4,095 Property taxes-headquarters building 13,650 Rent expense-factory 6,825 Sales 864,500 Sales salaries expense 136,500 Supplies-factory Miscellaneous costs-factory 3,250 4,420 Required: 1. Prepare the statement of cost of goods manufactured. Enter all amounts as positive numbers. 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 77,350 123,500 Purchases Cost of materials available for use Less materials inventory, December 31, 20Y6 200,850 95,550 Cost of direct materials used Direct labor 105,300 186,550 Factory overhead: Indirect labor 23,660 Depreciation expense-factory equipment 14,560 Heat, light, and power-factory 5,850 Property taxes-factory 4,095 Rent expense-factory Supplies-factory 6,825 3,250 Miscellaneous costs-factory Total factory overhead 4,420 62,660 Total manufacturing costs incurred 109,200 354,510 Total manufacturing costs Less work in process inventory, December 31, 20Y6 463,710 V 96,200 Cost of goods manufactured Feedback Check My Work 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, 20Y6 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 77,350 Depreciation expense-office equipment 22,750 367,510 864,500 Shanika Company Income Statement For the Year Ended December 31, 20Y6 Sales Cost of goods sold: Finished goods inventory, January 1, 20Y6 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 77,350 V Depreciation expense-office equipment 22,750 Property taxes-headquarters building 13,650 V 113,750 Selling expenses: Advertising expense Sales salaries expense Total operating expenses Net income $ 68,250 136,500 204,750 864,500 318,500