Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company The following information is available for Shanika Company for 2016: Inventories January 1 December 31 Materials $277,060 $349,100 Work in process Finished goods Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment 498,710 474,780 479,310 485,250 $237,040 33,510 45,030 Direct labor Heat, light, and power-factory Indirect labor Materials purchased 537,610 17,800 62,840 527,140 Office salaries expense 183,980 Property taxes-factory 14,660 Property taxes-headquarters building 30,370 Rent expense-factory 24,790 Sales 2,468,140 Sales salaries expense 303,020 Supplies-factory Miscellaneous costs-factory Required: 1. Prepare the statement of cost of goods manufactured. Shanika Company 12,220 7,680 Statement of Cost of Goods Manufactured For the Year Ended December 31, 2016 2. Prepare the income statement. Shanika Company Income Statement For the Year Ended December 31, 2016