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 $77,350 $95,550
Work in process 109,200 96,200
Finished goods 113,750 100,100
Advertising expense $68,250
Depreciation expense-office equipment 22,750
Depreciation expense-factory equipment 14,560
Direct labor 186,550
Heat, light, and power-factory 5,850
Indirect labor 23,660
Materials purchased 123,500
Office salaries expense 77,350
Property taxes-factory 4,095
Property taxes-headquarters building 13,650
Rent expense-factory 6,825
Sales 864,500
Sales salaries expense 136,500
Supplies-factory 3,250
Miscellaneous costs-factory 4,420
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:
$
$
$
Factory overhead: $
Total factory overhead
Total manufacturing costs incurred in 20Y6
Total manufacturing costs $

$
2. Prepare the 20Y6 income statement.

Shanika Company
Income Statement
For the Year Ended December 31, 20Y6
$
Cost of good sold:
$
$
$
Operating expenses:
Administrative expenses:
$
$
Selling expenses:
$
Total operating expenses
$