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

Prepare the statement of cost of goods manufactured.

Prepare the income statement.

The following information is available for Shanika Company for 20Y6: Inventories January 1 December 31 Materials $386,100 $471,040 Work in process 694,980 640,610 Finished goods 667,950 654,750 Advertising expense $319,840 45,220 Depreciation expense-office equipment Depreciation expense-factory equipment 60,760 Direct labor 725,400 24,020 Heat, light, and power-factory Indirect labor Materials purchased 84,790 711,270 Office salaries expense 248,240 19,780 Property taxes-factory Property taxes-headquarters building Rent expense-factory 40,980 33,440 Sales 3,330,250 408,860 Sales salaries expense Supplies-factory Miscellaneous costs-factory 16,490 10,360 Required: Check My Work 1 more Check My Work uses remaining Shanika Company Statement of Cost of Goods Manufactured For the Year Ended December 31, 2016 Work in process inventory, January 1, 2016 Direct materials: Materials inventory, January 1, 2016 Purchases X XX Cost of materials available for use X Less materials inventory) December 31, 2016 X Cost of direct materials used 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 X Total manufacturing costs incurred Total manufacturing costs Less work in process inventory December 31, 2016 K Cost of goods manufactured X 2. Prepare the income statement. Shanika Company Income Statement For the Year Ended December 31, 2016 Sales Cost of goods sold: Finished goods inventory, January 1, 2046 Cost of goods manufactured x x Cost of finished goods available for sale Less finished goods inventory, December 31, 2016 Cost of goods sola Gross profit X Operating expenses: Administrative expenses: Office salaries expense Depreciation expense office equipment Property taxes-headquarters building Selling expenses Advertising expense Sales salaries expense 8 X Total operating expenses x Netcome