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 $454,450 $563,520 Work in process 818,010 766,390 Finished goods 786,200 783,290 Advertising expense $382,630 Depreciation expense-office equipment 54,100 Depreciation expense-factory equipment 72,690 Direct labor 867,820 Heat, light, and power-factory 28,740 Indirect labor 101,430 Materials purchased 850,920 Office salaries expense 296,980 Property taxes-factory 23,670 Property taxes-headquarters building 49,030 Rent expense-factory 40,010 Sales 3,984,090 Sales salaries expense 489,140 Supplies-factory 19,720 Miscellaneous costs-factory 12,400 Required: 1. Prepare the statement of cost of goods manufactured. Shanika Company Statement of Cost of Goods Manufactured For the Year Ended December 31, 2016 Direct materials: Factory overhead: Total factory overhead Total manufacturing costs incurred Total manufacturing costs 00 Cost of goods manufactured 2. Prepare the income statement. Shanika Company Income Statement For the Year Ended December 31, 2016 Cost of goods sold: Operating expenses: Administrative expenses: Selling expenses: Total operating expenses