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The following information is available for Shanika Company for 20Y6: Inventories January 1 December 31 Materials $469,380 $577,340 Work in process 844,880 785,180 Finished goods
The following information is available for Shanika Company for 20Y6:
Inventories | January 1 | December 31 | ||
Materials | $469,380 | $577,340 | ||
Work in process | 844,880 | 785,180 | ||
Finished goods | 812,030 | 802,500 |
Advertising expense | $392,010 |
Depreciation expense-office equipment | 55,420 |
Depreciation expense-factory equipment | 74,480 |
Direct labor | 889,100 |
Heat, light, and power-factory | 29,440 |
Indirect labor | 103,920 |
Materials purchased | 871,780 |
Office salaries expense | 304,260 |
Property taxes-factory | 24,250 |
Property taxes-headquarters building | 50,230 |
Rent expense-factory | 40,990 |
Sales | 4,081,790 |
Sales salaries expense | 501,130 |
Supplies-factory | 20,210 |
Miscellaneous costs-factory | 12,700 |
Required:
1. Prepare the 20Y6 statement of cost of goods manufactured.
844,880 For the Year Ended December 31, 2016 Work in process inventory, January 1, 2016 Direct materials: Materials inventory, January 1, 20Y6 469,380 Purchases 871,780 Cost of materials available for use 1,341,160 577,340 3,259,660 X 889,100 $ 103,920 889,100 X 29,400 x 24,250 Materials inventory, December 31, 2016 Cost of direct materials used in production Direct labor Factory overhead: Indirect labor Direct labor Heat, light, and power-factory Property taxes-factory Rent expense-factory Supplies-factory Miscellaneous costs-factory Total factory overhead Total manufacturing costs incurred in 2016 Total manufacturing costs Work in process inventory, December 31, 20Y6 40,990 20,210 12,700 3,259,660 X 7,408,420 x 7,408,420 X Cost of goods manufactured $ 2. Prepare the 2016 income statement. Shanika Company Income Statement For the Year Ended December 31, 2016 Cost of goods sold Cost of good sold: Finished goods inventory, January 1, 2046 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 31, 2046 Cost of goods sold Gross profit Operating expenses: Administrative expenses: Office salaries expense Depreciation expense-factory equipment Property taxes-headquarters building Selling expenses: Advertising expense Sales salaries expense Total operating expenses Net lossStep by Step Solution
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