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

Inventories	January 1		December 31
Materials	$206,620		$252,080
Work in process	371,920		342,830
Finished goods	357,450		350,390

Advertising expense	$171,160
Depreciation expense-office equipment	24,200
Depreciation expense-factory equipment	32,520
Direct labor	388,200
Heat, light, and power-factory	12,860
Indirect labor	45,370
Materials purchased	380,640
Office salaries expense	132,850
Property taxes-factory	10,590
Property taxes-headquarters building	21,930
Rent expense-factory	17,900
Sales	1,782,210
Sales salaries expense	218,810
Supplies-factory	8,820
Miscellaneous costs-factory	5,550

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

Work in process inventory, January 1, 20Y6 ______

Direct materials:________

Materials inventory, January 1, 20Y6 ________

Purchases _________

Cost of materials available for use _______

Materials inventory, December 31, 20Y6 ________

Cost of direct materials used in production ________

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_________

Total manufacturing costs incurred in 20Y6_________

Total manufacturing costs_________

Work in process inventory, December 31, 20Y6 _________

Cost of goods manufactured_________

2.

Prepare the 20Y6 income statement.

Shanika Company
Income Statement
For the Year Ended December 31, 20Y6
Sales ________
Cost of good sold:_________
Finished goods inventory, January 1, 20Y6 _______
Cost of goods manufactured ________
Cost of finished goods available for sale ________
Finished goods inventory, December 31, 20Y6 _________
Cost of goods sold __________
Gross profit __________
Operating expenses:_______
Administrative expenses:_________
Office salaries expense_________
Depreciation expense-office equipment _________
Property taxes-headquarters building __________
Selling expenses:__________
Advertising expense ________
Sales salaries expense ___________
Total operating expenses__________
Net income __________