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$113,750100,100$Advertising expense$$$$68,250$Depreciation expense$-$office equipment$22,750$Depreciation expense$-$factory equipment$14,560$Direct labor$186,550$Heat, light, and power$-$factory$5,850$Indirect labor$23,660$Materials purchased$123,500$Office salaries expense$77,350$Property taxes$-$factory$4,095$Property taxes$-$headquarters building$13,650$Rent expense$-$factory$6,825$Sales$864,500$Sales salaries expense$136,500$Supplies$-$factory$3,250$Miscellaneous costs$-$factory$4,420$Required:Question Content Area$1.$Prepare the statement of cost of goods manufactured. Enter all amounts as positive numbers.Shanika CompanyStatement of Cost of Goods ManufacturedFor the Year Ended December $31,20$Y$6$Depreciation expense$-$factory equipmentIndirect laborSuppliesWork in process inventory, January $1,20$Y$6$Work in process inventory, December $31,20$Y$6$$Work in process inventory, January $1,20$Y$6324,000$Direct materials:Materials inventory, January $1,20$Y$6$Rent expense$-$factorySupplies$-$factoryWork in process inventory, January $1,20$Y$6$Work in process inventory, December $31,20$Y$6$$$-$ Select $-$Indirect laborProperty taxes$-$headquarters buildingPurchasesWork in process inventory, January $1,20$Y$6$Work in process inventory, December $31,20$Y$6$Purchases$601,770$Cost of finished goods available for saleCost of goods manufacturedCost of goods soldCost of materials available for useIndirect labor$Cost of materials available for use$925,770$Less indirect laborLess materials inventory, December $31,20$Y$6$Less miscellaneous cost$-$factoryLess work in process inventory, January $1,20$Y$6$Less work in process inventory, December $31,20$Y$6-$ Select $-$Cost of direct materials usedCost of finished goods available for saleCost of goods manufacturedCost of goods soldIndirect labor$Cost of direct materials used$27,250$Depreciation expense$-$factory equipmentDirect laborIndirect laborMiscellaneous costs$-$factorySupplies$-$factoryDirect labor$613,720$Factory overhead:Cost of materials available for useIndirect laborMaterials inventory, January $1,20$Y$6$Materials inventory, December $31,20$Y$6$ Purchases$$-$ Select $-$Cost of materials available for useDepreciation expense$-$factory equipmentDepreciation expense$-$office equipmentDirect laborPurchases$-$ Select $-$Direct laborHeat, light, and power$-$factoryMaterials inventory, January $1,20$Y$6$Materials inventory, December $31,20$Y$6$Work in process inventory, December $31,20$Y$6-$ Select $-$Cost of materials available for useDirect laborProperty taxes$-$factoryProperty taxes$-$headquarters buildingWork in process inventory, December $31,20$Y$6-$ Select $-$Direct laborPurchasesRent expense$-$factorySales salaries expenseWork in process inventory, December $31,20$Y$6-$ Select $-$Cost of goods soldCost of materials available for useDirect laborPurchasesSupplies$-$factory$-$ Select $-$Advertising expenseCost of materials available for useDirect materialsMiscellaneous costs$-$factoryPurchases$-$ Select $-$Total factory overheadfill in the blank d$21$f$0$ef$95$f$8306$f$\_29$Total manufacturing costs incurredfill in the blank d$21$f$0$ef$95$f$8306$f$\_30$Total manufacturing costs$fill in the blank d$21$f$0$ef$95$f$8306$f$\_31$Less cost of materials available for useLess direct materialsLess materials inventory, December $31,20$Y$6$Less work in process inventory, January $1,20$Y$6$Less work in process inventory, December $31,20$Y$6-$ Select $-$Cost of direct materials usedCost of finished goods available for saleCost of goods manufacturedCost of materials available for useIndirect labor$$-$ Select $-$Feedback AreaFeedback$1.$ The cost of goods manufactured is the beginning work in process plus the Cost of direct materials used plus direct labor and factory overhead, less the ending work in process.Question Content Area$2.$Prepare the income statement.Shanika CompanyIncome StatementFor the Year Ended December $31,20$Y$6$Cost of goods soldGross profitIndirect laborOffice salaries expenseSales$$-$ Select $-$Cost of goods sold:Advertising expenseFinished goods inventory, January $1,20$Y$6$Gross profitOffice salaries expenseSales$$-$ Select $-$Cost of direct materials usedCost of finished goods available for saleCost of goods manufacturedCost of materials available for useOffice salaries expense$-$ Select $-$Cost of direct materials usedCost of finished goods available for saleCost of goods soldCost of materials available for useOffice salaries expense$$-$ Select $-$Less advertising expenseLess depreciation expense$-$office equipmentLess finished goods inventory, December $1,20$Y$6$Less finished goods inventory, December $31,20$Y$6$Less purchases$-$ Select $-$Cost of direct materials usedCost of goods manufacturedCost of goods soldCost of materials available for useSales salaries expense$-$ Select $-$Cost of goods soldGross profitProperty taxes$-$headquarters buildingSalesSales salaries expense$$-$ Select $-$Operating expenses:Administrative expenses:Cost of goods manufacturedCost of goods soldOffice salaries expenseSalesSales salaries expense$$-$ Select $-$Advertising expenseCost of goods manufacturedCost of goods soldDepreciation expense$-$office equipmentGross profit$-$ Select $-$Cost of goods soldCost of goods manufacturedGross profitProperty taxes$-$headquarters buildingSales$-$ Select $-$$$-$ Select $-$Selling expenses:Advertising expenseCost of goods soldCost of goods manufacturedOffice salaries expenseSales$$-$ Select $-$Cost of goods manufacturedGross profitOffice salaries expenseSalesSales salaries expense$-$ Select $--$ Select $-$Total operating expensesfill in the blank $86$ef$03085$ff$2008\_27$Net incomeNet loss$$-$ Select $-$