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	$191,340		$233,430
   Work in process	344,410		317,460
   Finished goods	331,020		324,470

   Advertising expense	$158,500
   Depreciation expense-office equipment	22,410
   Depreciation expense-factory equipment	30,110
   Direct labor	359,480
   Heat, light, and power-factory	11,900
   Indirect labor	42,020
   Materials purchased	352,480
   Office salaries expense	123,020
   Property taxes-factory	9,800
   Property taxes-headquarters building	20,310
   Rent expense-factory	16,570
   Sales	1,650,350
   Sales salaries expense	202,620
   Supplies-factory	8,170
   Miscellaneous costs-factory	5,140

   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

Schedule of Cost of Goods manufactured
Direct Materials
Raw Material, Beginning Inventory	$    191,340
Add: Purchases	$    352,480
Total Raw Material Available	$    543,820
Deduct : Raw Material in inventory, ending	$    233,430
Raw Material used in production		$       310,390
Direct Labor		$       359,480
Factory Overhead
Depreciation expense-factory equipment	$       30,110
Heat, light, and power-factory	$       11,900
Indirect labor	$       42,020
Property taxes-factory	$         9,800
Rent expense-factory	$       16,570
Supplies-factory	$         8,170
Miscellaneous costs-factory	$         5,140
Total Factory Overhead		$       123,710
Total Manufacturing Costs		$       793,580
Add: Beginning Work in Process Inventory		$       344,410
		$    1,137,990
Deduct: Ending Work in Process Inventory		$       317,460
Cost of Goods Manufactured		$       820,530

Income Statement
Sales Revenue		$    1,650,350
Cost of Goods Sold
Finished Goods Inventory, Beginning	$    331,020
Add: Cost of Goods Manufactured	$    820,530
Cost of Goods Available for sale	$ 1,151,550
Deduct : Finished Goods Inventory, Ending	$    324,470
Cost of Goods Sold		$       827,080
Gross Profit		$       823,270
Operating Expenses
Administrative Expenses
Depreciation on Office equipment	$       22,410
Office salaries expense	$    123,020
Property taxes-office building	$       20,310
Selling Expenses
Sales salaries expense	$    202,620
Total Operating Expenses		$       368,360
Net Income		$       454,910