The following information is available for Shanika Company for 2016: Inventories January 1 December 31 Materials $318,530 Work in process Finished goods $398,160 541,500 573,350 551,060 553,440 $270,350 Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment 38,220 51,360 Direct labor 613,170 20,310 71,670 601,220 209,830 16,720 Heat, light, and power-factory Indirect labor Materials purchased Office salaries expense Property taxes-factory Property taxes-headquarters building Rent expense-factory Sales Sales salaries expense Supplies-factory Miscellaneous costs-factory 34,640 28,270 2,814,990 345,600 13,940 8,760 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 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: III Factory overhead: Total factory overhead Total manufacturing costs incurred Total manufacturing costs Cost of goods manufactured - Prepare the income statement. Shanika Company Income Statement For the Year Ended December 31, 2016 Cost of goods sold: LD Operating expenses: Administrative expenses: Selling expenses: Total operating expenses