Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company The following information is available for Shanika Company for 20Y6:
Inventories January 1 December 31
Materials $436,700 $545,880
Work in Process 786,060 742,400
Finished 755,490 758,770
Advertising expense $370,650
Depreciation expense-office equipment 52,400
Depreciation expense-factory equipment 70,420
Direct labor 840,660
Heat, light, and power-factory 27,840
Indirect labor 98,260
Materials purchased 824,280
Office salaries expense 287,680
Property taxes-factory 22,930
Property taxes-headquarters building 47,490
Rent expense-factory 38,760
Sales 3,859,370
Sales salaries expense 473,820
Supplies-factory 19,110
Miscellaneous costs-factory 12,010
Required:
1. Prepare the 20Y6 statement of 1.
2. Prepare the 20Y6 statement of cost of goods manufactured.
Shanika Company
Income Statement
For the Year Ended December 31, 20Y6
Sales 864,500
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