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

Inventories	January 1	December 31
Materials	$347,000	$435,000
Work in process	627,000	590,600
Finished goods	608,200	571,000

	December 31
Advertising expense	$ 295,200
Depreciation expense-office equipment	44,400
Depreciation expense-factory equipment	55,000
Direct labor	669,600
Heat, light, and power-factory	22,480
Indirect labor	76,750
Materials purchased	658,600
Office salaries expense	185,300
Property taxes-factory	18,200
Property taxes-office building	32,400
Rent expense-factory	32,500
Sales	3,016,000
Sales salaries expense	419,000
Supplies-factory	15,900
Miscellaneous costs-factory	9,600

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 Descriptions

Advertising expense

Cost of direct materials used

Cost of finished goods available for sale

Cost of goods manufactured

Cost of goods sold

Cost of materials available for use

Depreciation expense-factory equipment

Depreciation expense-office equipment

Direct labor

Finished goods inventory, December 31, 2016

Finished goods inventory, January 1, 2016

Gross profit

Heat, light, and power-factory

Indirect labor

Materials inventory, December 31, 2016

Materials inventory, January 1, 2016

Miscellaneous cost-factory

Net income

Office salaries expense

Property taxes-factory

Property taxes-office building

Purchases

Rent expense-factory

Sales

Sales salaries expense

Supplies-factory

Total manufacturing costs incurred

Total operating expenses

Work in process inventory, December 31, 2016

Work 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

5

6

7

8

9

Factory overhead:

10

11

12

13

14

15

16

17

Total factory overhead

18

19

Total manufacturing costs

20

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
6
7
8
9	Operating expenses:
10	Administrative expenses:
11
12
13
14	Selling expenses:
15
16
17
18