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

Inventories	January 1		December 31
Materials	$211,700		$262,510
Work in process	381,060		357,010
Finished goods	366,240		364,890

Advertising expense	$178,240
Depreciation expense-office equipment	25,200
Depreciation expense-factory equipment	33,860
Direct labor	404,270
Heat, light, and power-factory	13,390
Indirect labor	47,250
Materials purchased	396,390
Office salaries expense	138,340
Property taxes-factory	11,030
Property taxes-headquarters building	22,840
Rent expense-factory	18,640
Sales	1,855,950
Sales salaries expense	227,860
Supplies-factory	9,190
Miscellaneous costs-factory	5,780

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			$

Feedback

1. The cost of goods manufactured is the beginning work in process plus the cost of direct materials used in production plus direct labor and factory overhead, less the ending work in process.

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