The following information is available for Shanika Company for 2016:

Invevtories	January 1	December 31
Materials	77350	95550
Work in process	109200	96200
Finished goods	113750	100100

Advertising expense	68250
Deprecation expense- office equipment	22750
Deprecation expense- factory equipment	14560
Direct labor	186550
Heat, Light, and power- factory	5850
indirect labor	23660
materials purchased	123500
Office salaries expense	77350
property taxes - factory	4095
property taxes - headquarters building	13650
rent expense- factory	6825
Sales	864500
Sales salaries expense	136500
supplies - factory	3250
Miscellanous costs - factory	4420

1. Prepare the 2016 statement of cost of goods manufactured.

2. Prepare the 2016 income statement.