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	$346,490	$436,580
Work in process	623,680	593,750
Finished goods	599,430	606,850
Advertising expense		$296,440
Depreciation expense-office equipment		41,910
Depreciation expense-factory equipment		56,320
Direct labor		672,330
Heat, light, and power-factory		22,270
Indirect labor		78,580
Materials purchased		659,240
Office salaries expense		230,080
Property taxes-factory		18,340
Property taxes-headquarters building		37,980
Rent expense-factory		31,000
Sales		3,086,620
Sales salaries expense		378,950
Supplies-factory		15,280
Miscellaneous costs-factory		9,600

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

2. Prepare the income statement.

Shanika Company
Income Statement
For the Year Ended December 31, 20Y6
			$
Cost of goods sold:
		$
		$
			$
Operating expenses:
Administrative expenses:
	$
		$
Selling expenses:
	$
Total operating expenses
			$

Answer 1

Question

Cost Sheet
For the quarter ending December 31, 2016
Particulars
Opening Material inventory	$3,46,490
Add: Purchase of Raw materials	$6,59,240
Less: Closing Material inventory	$4,36,580
Direct Materials Consumed	$5,69,150
Direct Manufacturing Labor	$6,72,330
Prime cost		$12,41,480
Add :- Factory Over Heads:
Indirect labor	$78,580
Property Taxes- Factory	$18,340
Supplies - Factory	$15,280
Heat, Light and power factory	$22,270
Rent Expenses- Factory	$31,000
Depreciation On Factory Equipment	$56,320
Miscellaneous Cost-factory	$9,600
Works cost incurred		$14,72,870
Add : Work - in - Progress inventory	$6,23,680
Less: Closing -in-progess inventory	$5,93,750
Cost of Goods Manufactured		$15,02,800
Add:- Administration Over Heads:-
office salary	$2,30,080
Depreciation on office equipment	$41,910
Property Taxes- Headquater Building	$37,980
Utilities- Electrical	$0
Cost of Production		$18,12,770
Add : Opening finihed Goods inventory	$5,99,430
Less: Closing Finished goods inventory	$6,06,850
Cost of Goods sold		$18,05,350
Add:- Selling and Distribution OH
Sales salaries Exp	$3,78,950
Advertising	$2,96,440
Cost of Goods Sales		$24,80,740
Sales		$30,86,620
Profit		$6,05,880