The following information is available for Shanika Company for 20Y6: Inventories January 1 December 31 Materials $358,270 $451,420 Work in process 644,890 613,930 Finished goods 619,810 627,470 Advertising expense $306,510 Depreciation expense-office equipment 43,340 Depreciation expense-factory equipment 58,230 Direct labor 695,190 Heat, light, and power-factory 23,020 Indirect labor 81,260 Materials purchased 681,640 Office salaries expense 237,900 Property taxes-factory 18,960 Property taxes-headquarters building 39,270 Rent expense-factory 32,050 Sales 3,191,540 Sales salaries expense 391,830 Supplies-factory 15,800 Miscellaneous costs-factory 9,930 Required: 1. Prepare the 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 Total manufacturing costs Cost of goods manufactured 2. Prepare the income statement. Shanika Company Income Statement For the Year Ended December 31, 2016 Cost of goods sold: Operating expenses: Administrative expenses: O Selling expenses: Total operating expenses $