Question

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	$443,170		$553,960
Work in process	797,710		753,390
Finished goods	766,680		770,000

Advertising expense	$376,140
Depreciation expense-office equipment	53,180
Depreciation expense-factory equipment	71,460
Direct labor	853,100
Heat, light, and power-factory	28,250
Indirect labor	99,710
Materials purchased	836,480
Office salaries expense	291,940
Property taxes-factory	23,270
Property taxes-headquarters building	48,190
Rent expense-factory	39,330
Sales	3,916,500
Sales salaries expense	480,840
Supplies-factory	19,390
Miscellaneous costs-factory	12,190

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:________
Materials inventory, January 1, 20Y6 ________
Purchases _________
Cost of materials available for use _______
Materials inventory, December 31, 20Y6 ________
Cost of direct materials used in production ________
Direct labor _________
Factory overhead:__________
Indirect labor _________
Depreciation expense-factory equipment _________
Heat, light, and power-factory ___________
Property taxes-factory _________
Rent expense-factory ___________
Supplies-factory __________
Miscellaneous costs-factory _________
Total factory overhead_________
Total manufacturing costs incurred in 20Y6_________
Total manufacturing costs_________
Work in process inventory, December 31, 20Y6 _________
Cost of goods manufactured_________ 2. Prepare the 20Y6 income statement. Shanika Company Income Statement For the Year Ended December 31, 20Y6 Sales ________ 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 __________

Answer 1

Shanika Company
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 20Y6
Work in process inventory, January 1, 20Y6 ______			$    797,710.00
Direct materials:________
Materials inventory, January 1, 20Y6 ________	$   443,170.00
Purchases _________	$   836,480.00
Cost of materials available for use _______	$1,279,650.00
Materials inventory, December 31, 20Y6 ________	$   553,960.00
Cost of direct materials used in production ________		$725,690.00
Direct labor _________		$853,100.00
Factory overhead:__________
Indirect labor _________	$     99,710.00
Depreciation expense-factory equipment _________	$     71,460.00
Heat, light, and power-factory ___________	$     28,250.00
Property taxes-factory _________	$     23,270.00
Rent expense-factory ___________	$     39,330.00
Supplies-factory __________	$     19,390.00
Miscellaneous costs-factory _________	$     12,190.00
Total factory overhead_________		$293,600.00
Total manufacturing costs incurred in 20Y6_________			$ 1,872,390.00
Total manufacturing costs_________			$ 2,670,100.00
Work in process inventory, December 31, 20Y6 _________			$    753,390.00
Cost of goods manufactured_________			$ 1,916,710.00

Shanika Company
Income Statement
For the Year Ended December 31, 20Y6
Sales ________			$ 3,916,500.00
Cost of good sold:_________
Finished goods inventory, January 1, 20Y6 _______		$   766,680.00
Cost of goods manufactured ________		$1,916,710.00
Cost of finished goods available for sale ________		$2,683,390.00
Finished goods inventory, December 31, 20Y6 _________		$   770,000.00
Cost of goods sold __________			$ 1,913,390.00
Gross profit __________			$ 2,003,110.00
Operating expenses:_______
Administrative expenses:_________
Office salaries expense_________	$   291,940.00
Depreciation expense-office equipment _________	$     53,180.00
Property taxes-headquarters building __________	$     48,190.00	$   393,310.00
Selling expenses:__________
Advertising expense ________	$   376,140.00
Sales salaries expense ___________	$   480,840.00	$   856,980.00
Total operating expenses__________			$ 1,250,290.00
Net income __________			$      752,820.00