Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company

Obj. 3 The following information is available for Shanika Company for 20Y6:

Inventories	January 1	December 31
Materials	$ 77,350	$ 95,550
Work in process	109,200	96,200
Finished goods	113,750	100,100
Advertising expense		$ 68,250
Depreciation expenseoffice equipment		22,750
Depreciation expensefactory equipment		14,560
Direct labor		186,550
Heat, light, and powerfactory		5,850
Indirect labor		23,660
Materials purchased		123,500
Office salaries expense		77,350
Property taxesfactory		4,095
Property taxesheadquarters building		$ 13,650
Rent expensefactory		6,825
Sales		864,500
Sales salaries expense		136,500
Suppliesfactory		3,250
Miscellaneous costsfactory		4,420

Instructions

1. Prepare the 20Y6 statement of cost of goods manufactured.

   Check Figure: Cost of goods manufactured, $367,510

2. Prepare the 20Y6 income statement.