The following information is available for The NewQuest Corporation for 2016:

Inventories	January 1	December 31
Materials	$352,000	$437,000
Work in process	625,800	592,800
Finished goods	605,200	576,000

	December 31
Advertising expense	$ 294,200
Depreciation expense-office equipment	44,760
Depreciation expense-factory equipment	56,200
Direct labor	669,600
Heat, light, and power-factory	22,060
Indirect labor	76,750
Materials purchased	658,200
Office salaries expense	184,200
Property taxes-factory	17,000
Property taxes-office building	31,600
Rent expense-factory	32,100
Sales	3,015,000
Sales salaries expense	418,000
Supplies-factory	15,200
Miscellaneous costs-factory	9,500

Required:

A.

Prepare the 2016 statement of cost of goods manufactured.*

B.

Prepare the 2016 income statement.*

* Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. Enter all amounts as positive numbers.

Amount DescriptionsAdvertising expenseCost of direct materials usedCost of finished goods available for saleCost of goods manufacturedCost of goods soldCost of materials available for useDepreciation expense-factory equipmentDepreciation expense-office equipmentDirect laborFinished goods inventory, December 31, 2016Finished goods inventory, January 1, 2016Gross profitHeat, light, and power-factoryIndirect laborMaterials inventory, December 31, 2016Materials inventory, January 1, 2016Miscellaneous cost-factoryNet incomeOffice salaries expenseProperty taxes-factoryProperty taxes-office buildingPurchasesRent expense-factorySalesSales salaries expenseSupplies-factoryTotal manufacturing costs incurredTotal operating expensesWork in process inventory, December 31, 2016Work in process inventory, January 1, 2016

A. Prepare the 2016 statement of cost of goods manufactured. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. Enter all amounts as positive numbers.

The NewQuest Corporation

Statement of Cost of Goods Manufactured

For the Year Ended December 31, 2016

1
2	Direct materials:
3
4
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6
7
8
9	Factory overhead:
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11
12
13
14
15
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17	Total factory overhead
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19	Total manufacturing costs
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21

B. Prepare the 2016 income statement. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. Enter all amounts as positive numbers.

The NewQuest Corporation

Income Statement

For the Year Ended December 31, 2016

1
2	Cost of goods sold:
3
4
5
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7
8
9	Operating expenses:
10	Administrative expenses:
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14	Selling expenses:
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