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	$429,100		$523,500
Work in process	772,380		711,960
Finished goods	742,340		727,670

Advertising expense	$355,460
Depreciation expense-office equipment	50,260
Depreciation expense-factory equipment	67,530
Direct labor	806,190
Heat, light, and power-factory	26,700
Indirect labor	94,230
Materials purchased	790,490
Office salaries expense	275,880
Property taxes-factory	21,990
Property taxes-headquarters building	45,540
Rent expense-factory	37,170
Sales	3,701,150
Sales salaries expense	454,400
Supplies-factory	18,320
Miscellaneous costs-factory	11,520

Required:

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

2. Prepare the 20Y6 income statement.