Question

The following information is available for Shanika Company for 2016:

Inventories	January 1	December 31
Materials	$ 77,350	$ 95,550
Work in process	109,200	96,200
Finished goods	113,750	100,100

	December 31
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:
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 number The following information is available for Shanika Company for 2016: Inventories January 1 December 31 Materials $ 77,350 $ 95,550 Work in process 109,200 96,200 Finished goods 113,750 100,100 December 31 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: 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. 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. SHANIKA COMPANY 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. SHANIKA COMPANY 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

Answer 1