The following information is available for Shanika Company for 2018:

Inventories January 1 December 31

Materials $77,350 $95,550

Work in Process 109,200 96,200

Finished Goods 113,750 100,100

Accounts December 31 Balances

Advertising Expense $68,250

Depreciation expense-office equipment 22,750

Depreciation expense-factory equipment 14,560

Direct Labor 186,550

Heat, Light, and Power-Factory 5,850

Indirect Labor 23,600

Materials Purchased 123,500

Office Salaries Expense 77,350

Property Taxes-Factory 4,095

Property Taxes-Headquarters Building 13,650

Rent Expense-Factory 6,825

Sales 864,500

Sales salaries expense 136,500

Supplies-Factory 3,250

Miscellaneous Cost-Factory 4,240

1.Prepare the Statement of Cost of Goods Manufactured for 2018.

2.Prepare the Income Statement for 2018.