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	$202,840		$255,580
Work in process	365,110		347,590
Finished goods	350,910		355,260

Advertising expense	$173,540
Depreciation expense-office equipment	24,540
Depreciation expense-factory equipment	32,970
Direct labor	393,590
Heat, light, and power-factory	13,030
Indirect labor	46,000
Materials purchased	385,930
Office salaries expense	134,690
Property taxes-factory	10,730
Property taxes-headquarters building	22,240
Rent expense-factory	18,150
Sales	1,806,950
Sales salaries expense	221,840
Supplies-factory	8,950
Miscellaneous costs-factory	5,620

Required:

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-factory equipment
Property taxes-factory		$
Selling expenses:
Advertising expense	$
Sales salaries expense
Total operating expenses
Net income