1. The following information is available for Shanika Company for 20Y6:

   Inventories	January 1		December 31
   Materials	$397,080		$492,380
   Work in process	714,740		669,640
   Finished goods	686,950		684,410

   Advertising expense	$334,330
   Depreciation expense-office equipment	47,270
   Depreciation expense-factory equipment	63,520
   Direct labor	758,270
   Heat, light, and power-factory	25,110
   Indirect labor	88,630
   Materials purchased	743,490
   Office salaries expense	259,480
   Property taxes-factory	20,680
   Property taxes-headquarters building	42,840
   Rent expense-factory	34,960
   Sales	3,481,130
   Sales salaries expense	427,390
   Supplies-factory	17,230
   Miscellaneous costs-factory	10,830

   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
   			$
   Direct materials:
   	$
   	$
   		$
   Factory overhead:
   	$
   Total factory overhead
   Total manufacturing costs incurred in 20Y6
   Total manufacturing costs			$
   Cost of goods manufactured			$

   2. Prepare the 20Y6 income statement.

   Shanika Company
   Income Statement
   For the Year Ended December 31, 20Y6
   			$
   Cost of good sold:
   		$
   		$
   			$
   Operating expenses:
   Administrative expenses:
   	$
   		$
   Selling expenses:
   	$
   Total operating expenses
   			$

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