Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing CompanyThe following information is available for Shanika Company for $20$Y$6$:InventoriesJanuary $1$December $31$Materials$$414,250$$$505,390$Work in process$745,650687,330$Finished goods$716,650702,490$Line Item DescriptionAmountAdvertising expense$$343,160$Depreciation expense$-$office equipment$48,520$Depreciation expense$-$factory equipment$65,200$Direct labor$778,300$Heat, light, and power$-$factory$25,770$Indirect labor$90,970$Materials purchased$763,140$Office salaries expense$266,340$Property taxes$-$factory$21,230$Property taxes$-$headquarters building$43,970$Rent expense$-$factory$35,880$Sales$3,573,110$Sales salaries expense$438,680$Supplies$-$factory$17,690$Miscellaneous costs$-$factory$11,120$Required:Question Content Area$1.$ Prepare the $20$Y$6$ statement of cost of goods manufactured.Shanika CompanyStatement of Cost of Goods ManufacturedFor the Year Ended December $31,20$Y$6$Costs TypeAmountAmountAmount$$-$ Select $-$Direct materials:$$-$ Select $--$ Select $-$$$-$ Select $--$ Select $-$$$-$ Select $--$ Select $-$Factory overhead:$$-$ Select $--$ Select $--$ Select $--$ Select $--$ Select $--$ Select $--$ Select $-$Total factory overheadTotal factory overheadTotal manufacturing costs incurred in $20$Y$6$Total manufacturing costs incurred in $20$Y$6$Total manufacturing costs$Total manufacturing costs$-$ Select $-$$$-$ Select $-$Question Content Area$2.$ Prepare the $20$Y$6$ income statement.Shanika CompanyIncome StatementFor the Year Ended December $31,20$Y$6$Line Item DescriptionAmountAmountAmount$$-$ Select $-$Cost of good sold:$$-$ Select $--$ Select $-$$$-$ Select $--$ Select $--$ Select $-$$$-$ Select $-$Operating expenses:Administrative expenses:$$-$ Select $--$ Select $--$ Select $-$blankTotal administrative expensesblank$Total administrative expensesblankSelling expenses:$$-$ Select $--$ Select $-$blankTotal selling expensesblankTotal selling expensesblankTotal operating expensesTotal operating expenses$$-$ Select $-$