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 $338,430 $426,420 Work in process 609,170 579,930 Finished goods 585,480 592,720 $289,540 40,940 55,010 656,690 21,750 Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment Direct labor Heat, light, and power-factory Indirect labor Materials purchased Office salaries expense Property taxes-factory Property taxes-headquarters building Rent expense-factory 76,760 643,890 224,720 17,910 37,100 30,280 Sales 3,014,790 370,130 Sales salaries expense Supplies-factory Miscellaneous costs-factory 14,920 9,380 Required: 1. Prepare the 2046 statement of cost of goods manufactured. Shanika Company Statement of Cost of Goods Manufactured For the Year Ended December 31, 2016 Work in process inventory, January 1, 2016 609,170 Direct materials: Materials inventory, January 1, 2016 338,430 Purchases 643,890 Cost of materials available for use Materials inventory, December 31, 2016 Cost of direct materials used in production 426,420 Direct labor Factory overhead: Indirect labor 76,760 Depreciation expense-factory equipment 55,010 Heat, light, and power-factory 21,750 Property taxes-factory 17,910 Rent expense-factory 30,280 Supplies-factory 14,920 Miscellaneous costs-factory 9,380 226,010 Total factory overhead Total manufacturing costs incurred in 2046 Total manufacturing costs Work in process inventory, December 31, 2046 579,930 Cost of goods manufactured 2. Prepare the 2016 income statement. Shanika Company Income Statement For the Year Ended December 31, 2016 Sales Cost of good sold: Finished goods inventory, January 1, 2016 Cost of goods manufactured Cost of finished goods available for sale $ Finished goods inventory, December 31, 2016 Cost of goods sold Gross profit Operating expenses: Administrative expenses: Office salaries expense 224,720 Depreciation expense-office equipment 40,940 Property taxes-headquarters building 37,100 $ Selling expenses: Advertising expense 289,540 Sales salaries expense 370,130 Total operating expenses Net income