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 $202,280 $252,850 Work in process 364,100 343,880 Finished goods 349,940 351,460 $171,690 Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment 24,270 32,620 Direct labor 389,390 Heat, light, and power-factory Indirect labor 12,900 45,510 Materials purchased 381,800 Office salaries expense 133,250 10,620 Property taxes-factory Property taxes-headquarters building Rent expense-factory 22,000 17,950 1,787,650 Sales Sales salaries expense Supplies-factory Miscellaneous costs-factory 219,470 8,850 5,560 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 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