Statement of cost of goods manufactured and income statement for aObJ. 2, 3 manufacturing company The following information is available for The NewQuest Corporation for 2016:

Inventories January 1 December 31 Materials $351,000 $436,800 Work in process 631,800 592,800 Finished goods 608,400 576,000

Advertising expense $296,400 Depreciation expenseoffice equipment 42,120 Depreciation expensefactory equipment 56,160 Direct labor 670,800 Heat, light, and powerfactory 22,460 Indirect labor 78,750 Materials purchased 659,800 Office salaries expense 185,000 Property taxesfactory 18,500 Property taxesoffice building 32,400 Rent expensefactory 32,000 Sales 3,010,000 Sales salaries expense 420,000 Suppliesfactory 15,400 Miscellaneous costsfactory 9,500

Instructions 1. Prepare the 2016 statement of cost of goods manufactured. 2. Prepare the 2016 income statement.