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	$441,510		$551,890
Work in process	794,720		750,570
Finished goods	763,810		767,130

Advertising expense	$374,730
Depreciation expense-office equipment	52,980
Depreciation expense-factory equipment	71,190
Direct labor	849,910
Heat, light, and power-factory	28,150
Indirect labor	99,340
Materials purchased	833,350
Office salaries expense	290,850
Property taxes-factory	23,180
Property taxes-headquarters building	48,010
Rent expense-factory	39,180
Sales	3,901,860
Sales salaries expense	479,040
Supplies-factory	19,320
Miscellaneous costs-factory	12,140

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
			$
Direct materials:
	$
	$
		$
Factory overhead:
	$
Total factory overhead
Total manufacturing costs incurred in 20Y6
Total manufacturing costs			$
Cost of goods manufactured			$

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
			$

Answer 1