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

Inventories	January 1		December 31
Materials	$200,330		$246,410
Work in process	360,590		335,120
Finished goods	346,570		342,510

Advertising expense	$167,310
Depreciation expense-office equipment	23,660
Depreciation expense-factory equipment	31,790
Direct labor	379,470
Heat, light, and power-factory	12,570
Indirect labor	44,350
Materials purchased	372,080
Office salaries expense	129,860
Property taxes-factory	10,350
Property taxes-headquarters building	21,440
Rent expense-factory	17,500
Sales	1,742,120
Sales salaries expense	213,880
Supplies-factory	8,620
Miscellaneous costs-factory	5,420

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