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	$427,050	$533,810
Work in process	768,690	725,980
Finished goods	738,800	742,000
Advertising expense		$362,460
Depreciation expense-office equipment		51,250
Depreciation expense-factory equipment		68,860
Direct labor		822,070
Heat, light, and power-factory		27,220
Indirect labor		96,090
Materials purchased		806,050
Office salaries expense		281,320
Property taxes-factory		22,420
Property taxes-headquarters building		46,440
Rent expense-factory		37,900
Sales		3,774,040
Sales salaries expense		463,350
Supplies-factory		18,680
Miscellaneous costs-factory		11,740

Required:

1. Prepare the statement of cost of goods manufactured.

Shanika Company
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 20Y6
			$
Direct materials:
	$
	$
		$
Factory overhead:
	$
Total factory overhead
Total manufacturing costs incurred
Total manufacturing costs			$
Cost of goods manufactured			$

2. Prepare the income statement.

Shanika Company
Income Statement
For the Year Ended December 31, 20Y6
			$
Cost of goods sold:
		$
		$
			$
Operating expenses:
Administrative expenses:
	$
		$
Selling expenses:
	$
Total operating expenses
			$