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

Inventories	January 1		December 31
Materials	$414,340		$509,640
Work in process	745,810		693,110
Finished goods	716,810		708,400

Advertising expense	$346,050
Depreciation expense-office equipment	48,930
Depreciation expense-factory equipment	65,740
Direct labor	784,850
Heat, light, and power-factory	25,990
Indirect labor	91,740
Materials purchased	769,560
Office salaries expense	268,580
Property taxes-factory	21,400
Property taxes-headquarters building	44,340
Rent expense-factory	36,180
Sales	3,603,150
Sales salaries expense	442,370
Supplies-factory	17,840
Miscellaneous costs-factory	11,210

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