Question

1. 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	$212,250	$267,440
   Work in process	382,050	363,720
   Finished goods	367,190	371,740
   Advertising expense		$181,590
   Depreciation expense-office equipment		25,670
   Depreciation expense-factory equipment		34,500
   Direct labor		411,860
   Heat, light, and power-factory		13,640
   Indirect labor		48,140
   Materials purchased		403,830
   Office salaries expense		140,940
   Property taxes-factory		11,230
   Property taxes-headquarters building		23,270
   Rent expense-factory		18,990
   Sales		1,890,800
   Sales salaries expense		232,140
   Supplies-factory		9,360
   Miscellaneous costs-factory		5,880

   Required:

   1. Prepare the statement of cost of goods manufactured.

   Shanika Company
   Statement of Cost of Goods Manufactured
   For the Year Ended December 31, 20Y6
   			$fill in the blank 7e5f500ad068063_2
   Direct materials:
   	$fill in the blank 7e5f500ad068063_4
   	fill in the blank 7e5f500ad068063_6
   	$fill in the blank 7e5f500ad068063_8
   	fill in the blank 7e5f500ad068063_10
   		$fill in the blank 7e5f500ad068063_12
   		fill in the blank 7e5f500ad068063_14
   Factory overhead:
   	$fill in the blank 7e5f500ad068063_16
   	fill in the blank 7e5f500ad068063_18
   	fill in the blank 7e5f500ad068063_20
   	fill in the blank 7e5f500ad068063_22
   	fill in the blank 7e5f500ad068063_24
   	fill in the blank 7e5f500ad068063_26
   	fill in the blank 7e5f500ad068063_28
   Total factory overhead		fill in the blank 7e5f500ad068063_29
   Total manufacturing costs incurred			fill in the blank 7e5f500ad068063_30
   Total manufacturing costs			$fill in the blank 7e5f500ad068063_31
   			fill in the blank 7e5f500ad068063_33
   Cost of goods manufactured			$fill in the blank 7e5f500ad068063_34

   2. Prepare the income statement.

   Shanika Company
   Income Statement
   For the Year Ended December 31, 20Y6
   			$fill in the blank 16f120f76026010_2
   Cost of goods sold:
   		$fill in the blank 16f120f76026010_4
   		fill in the blank 16f120f76026010_6
   		$fill in the blank 16f120f76026010_8
   		fill in the blank 16f120f76026010_10
   			fill in the blank 16f120f76026010_12
   			$fill in the blank 16f120f76026010_14
   Operating expenses:
   Administrative expenses:
   	$fill in the blank 16f120f76026010_16
   	fill in the blank 16f120f76026010_18
   	fill in the blank 16f120f76026010_20	$fill in the blank 16f120f76026010_21
   Selling expenses:
   	$fill in the blank 16f120f76026010_23
   	fill in the blank 16f120f76026010_25	fill in the blank 16f120f76026010_26
   Total operating expenses			fill in the blank 16f120f76026010_27
   			$fill in the blank 16f120f76026010_29

Answer 1

1
SHANIKA COMPANY
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 20Y6
Work in process inventory, January 1, 20Y6			382,050
Direct materials:
Materials inventory, January 1, 20Y6	212,250
Purchases	403830
Cost of materials available for use	616080
Less materials inventory, December 31, 20Y6	267440
Cost of direct materials used in production		348,640
Direct labor		411860
Factory overhead:
Indirect labor	48140
Depreciation expense—factory equipment	34500
Heat, light, and power—factory	13640
Property taxes—factory	11230
Rent expense—factory	18990
Supplies—factory	9360
Miscellaneous cost—factory	5880
Total factory overhead		151740
Total manufacturing costs incurred during the year			912.240
Total manufacturing costs			1,294,290
Less work in process inventory, December 31, 20Y6			363,720
Cost of goods manufactured			930,570
2
SHANIKA COMPANY
Income Statement
For the Year Ended December 31, 20Y6
Sales			1,890,800
Cost of goods sold:
Finished goods inventory, January 1, 20Y6		367190
Cost of goods manufactured		930570
Cost of finished goods available for sale		1,297,760
Less finished goods inventory,December 31, 20Y6		371,740
Cost of goods sold			926,020
Gross profit			964,780
Operating expenses:
Administrative expenses:
Office salaries expense	140940
Depreciation expense—office equipment	25,670
Property taxes—headquarters building	23,270	189,880
Selling expenses:
Advertising expense	181,590
Sales salaries expense	232,140	413,730
Total operating expenses			603,610
Net Income			361,170