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

The following information is available for Shanika Company for 20Y6:

Inventories	January 1		December 31
Materials	$443,170		$553,960
Work in process	797,710		753,390
Finished goods	766,680		770,000

Advertising expense	$376,140
Depreciation expense-office equipment	53,180
Depreciation expense-factory equipment	71,460
Direct labor	853,100
Heat, light, and power-factory	28,250
Indirect labor	99,710
Materials purchased	836,480
Office salaries expense	291,940
Property taxes-factory	23,270
Property taxes-headquarters building	48,190
Rent expense-factory	39,330
Sales	3,916,500
Sales salaries expense	480,840
Supplies-factory	19,390
Miscellaneous costs-factory	12,190

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

Shanika Company

Statement of Cost of Goods Manufactured

For the Year Ended December 31, 20Y6

Work in process inventory, January 1, 20Y6 ______

Direct materials:________

Materials inventory, January 1, 20Y6 ________

Purchases _________

Cost of materials available for use _______

Materials inventory, December 31, 20Y6 ________

Cost of direct materials used in production ________

Direct labor _________

Factory overhead:__________

Indirect labor _________

Depreciation expense-factory equipment _________

Heat, light, and power-factory ___________

Property taxes-factory _________

Rent expense-factory ___________

Supplies-factory __________

Miscellaneous costs-factory _________

Total factory overhead_________

Total manufacturing costs incurred in 20Y6_________

Total manufacturing costs_________

Work in process inventory, December 31, 20Y6 _________

Cost of goods manufactured_________

2.

Prepare the 20Y6 income statement.

Shanika Company
Income Statement
For the Year Ended December 31, 20Y6
Sales ________
Cost of good sold:_________
Finished goods inventory, January 1, 20Y6 _______
Cost of goods manufactured ________
Cost of finished goods available for sale ________
Finished goods inventory, December 31, 20Y6 _________
Cost of goods sold __________
Gross profit __________
Operating expenses:_______
Administrative expenses:_________
Office salaries expense_________
Depreciation expense-office equipment _________
Property taxes-headquarters building __________
Selling expenses:__________
Advertising expense ________
Sales salaries expense ___________
Total operating expenses__________
Net income __________