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$$77,350$$$95,550$Work in process$109,20096,200$Finished goods$113,750100,100$Line Item DescriptionAmountAdvertising expense$$68,250$Depreciation expense$-$office equipment$22,750$Depreciation expense$-$factory equipment$14,560$Direct labor$186,550$Heat, light, and power$-$factory$5,850$Indirect labor$23,660$Materials purchased$123,500$Office salaries expense$77,350$Property taxes$-$factory$4,095$Property taxes$-$headquarters building$13,650$Rent expense$-$factory$6,825$Sales$864,500$Sales salaries expense$136,500$Supplies$-$factory$3,250$Miscellaneous costs$-$factory$4,420$Required:Question Content Area$1.$ Prepare the $20$Y$6$ statement of cost of goods manufactured.Costs TypeAmountAmountAmountCost of goods manufacturedDepreciation expense$-$factory equipmentIndirect laborSuppliesWork in process inventory, January $1,20$Y$6$$$-$ Select $-$Direct materials:Cost of goods manufacturedMaterials inventory, January $1,20$Y$6$Rent expense$-$factorySupplies$-$factoryWork in process inventory, December $31,20$Y$6$$$-$ Select $-$Cost of goods manufacturedIndirect laborProperty taxes$-$headquarters buildingPurchasesWork in process inventory, December $31,20$Y$6-$ Select $-$Cost of finished goods available for saleCost of goods manufacturedCost of goods soldCost of materials available for useWork in process inventory, December $31,20$Y$6$$$-$ Select $-$Cost of goods manufacturedIndirect laborMaterials inventory, December $31,20$Y$6$Miscellaneous cost$-$factoryWork in process inventory, December $31,20$Y$6-$ Select $-$Cost of direct materials used in productionCost of finished goods available for saleCost of goods manufacturedCost of goods soldWork in process inventory, January $1,20$Y$6$$$-$ Select $-$Cost of goods manufacturedDepreciation expense$-$factory equipmentDirect laborIndirect laborSupplies$-$factory$-$ Select $-$Factory overhead:Cost of goods manufacturedCost of materials available for useIndirect laborMaterials inventory, January $1,20$Y$6$Purchases$$-$ Select $-$Cost of goods manufacturedDepreciation expense$-$factory equipmentDepreciation expense$-$office equipmentDirect laborPurchases$-$ Select $-$Cost of goods manufacturedDirect laborHeat, light, and power$-$factoryWork in process inventory, December $31,20$Y$6$Materials inventory, January $1,20$Y$6-$ Select $-$Cost of goods manufacturedCost of materials available for useDirect laborProperty taxes$-$factoryProperty taxes$-$headquarters building$-$ Select $-$Cost of goods manufacturedDirect laborPurchasesRent expense$-$factorySales salaries expense$-$ Select $-$Cost of goods manufacturedCost of goods soldDirect laborPurchasesSupplies$-$factory$-$ Select $-$Cost of goods manufacturedAdvertising expenseCost of materials available for useDirect materialsMiscellaneous costs$-$factory$-$ 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 costsCost of materials available for useDirect materialsMaterials inventory, December $31,20$Y$6$Materials inventory, January $1,20$Y$6$Work in process inventory, December $31,20$Y$6-$ Select $-$Cost of direct materials used in productionCost of finished goods available for saleCost of goods manufacturedCost of materials available for useMaterials inventory, January $1,20$Y$6$$$-$ Select $-$Question Content Area$2.$ Prepare the $20$Y$6$ income statement.Costs TypeAmountAmountAmountAdvertising expenseCost of goods soldGross profitIndirect laborSales$$-$ Select $-$Cost of good sold:Advertising expenseFinished goods inventory, January $1,20$Y$6$Gross profitSalesSales salaries expense$$-$ Select $-$Cost of direct materials used in productionCost of finished goods available for saleCost of goods manufacturedCost of materials available for useOffice salaries expense$-$ Select $-$Cost of direct materials used in productionCost of finished goods available for saleCost of goods soldCost of materials available for useOffice salaries expense$$-$ Select $-$Depreciation expense$-$office equipmentFinished goods inventory, December $1,20$Y$6$Finished goods inventory, December $31,20$Y$6$Office salaries expensePurchases$-$ Select $-$Cost of direct materials used in productionCost of goods manufacturedCost of goods soldCost of materials available for useOffice salaries expense$-$ Select $-$Cost of goods soldGross profitOffice salaries expenseProperty taxes$-$headquarters buildingSales$$-$ Select $-$Operating expenses:Administrative expenses:Cost of goods soldFinished goods inventory, January $1,20$Y$6$Office salaries expenseSalesSales salaries expense$$-$ Select $-$Advertising expenseCost of goods soldDepreciation expense$-$office equipmentFinished goods inventory, January $1,20$Y$6$Gross profit$-$ Select $-$Cost of goods soldFinished goods inventory, January $1,20$Y$6$Gross profitProperty taxes$-$headquarters buildingSales$-$ Select $-$blankTotal administrative expensesblank$Total administrative expensesblankSelling expenses:Advertising expenseCost of goods soldFinished goods inventory, January $1,20$Y$6$Office salaries expenseSales$$-$ Select $-$Cost of goods manufacturedGross profitOffice salaries expenseSalesSales salaries expense$-$ Select $-$blankTotal selling expensesblankTotal selling expensesblankTotal operating expensesTotal operating expensesNet incomeNet loss$$-$ Select $-$