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

Inventories	January 1	December 31
Materials	$ 77,350	$ 95,550
Work in process	109,200	96,200
Finished goods	113,750	100,100

Advertising expense	$ 68,250
Depreciation expenseoffice equipment	22,750
Depreciation expensefactory equipment	14,560
Direct labor	186,550
Heat, light, and powerfactory	5,850
Indirect labor	23,660
Materials purchased	123,500
Office salaries expense	77,350
Property taxesfactory	4,095
Property taxesheadquarters building	13,650
Rent expensefactory	6,825
Sales	864,500
Sales salaries expense	136,500
Suppliesfactory	3,250
Miscellaneous costsfactory	4,420

Instructions:

1. Prepare the 20Y6 statement of cost of goods manufactured.
2. Prepare the 20Y6 income statement.