The following information is available for Shanika Company for 20Y6:InventoriesJanuary 1December 31Materials$347,900$438,350Work in process626,220596,160Finished goods601,870609,310 Advertising expense $297,640Depreciation expense-office equipment 42,080Depreciation expense-factory equipment 56,550Direct labor 675,060Heat, light, and power-factory 22,360Indirect labor 78,900Materials purchased 661,910Office salaries expense 231,010Property taxes-factory 18,410Property taxes-headquarters building 38,140Rent expense-factory 31,120Sales 3,099,130Sales salaries expense 380,490Supplies-factory 15,340Miscellaneous costs-factory 9,640Required:1. Prepare the statement of cost of goods manufactured.2. Prepare the income statement. Shanika CompanyIncome StatementFor the Year Ended December 31, 20Y6Cost of goods sold:Operating expenses:Administrative expenses:Selling expenses:Total operating expenses%24 1. Prepare the statement of cost of goods manufactured.Shanika CompanyStatement of Cost of Goods ManufacturedFor the Year Ended December 31, 20Y6Direct materials:Factory overhead:Total factory overheadTotal manufacturing costs incurredTotal manufacturing costsCost of goods manufactured%24%24

Required statements are given below:

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information is available for Shanika Company for 20Y6:

Inventories	January 1	December 31
Materials	$347,900	$438,350
Work in process	626,220	596,160
Finished goods	601,870	609,310

Advertising expense		$297,640
Depreciation expense-office equipment		42,080
Depreciation expense-factory equipment		56,550
Direct labor		675,060
Heat, light, and power-factory		22,360
Indirect labor		78,900
Materials purchased		661,910
Office salaries expense		231,010
Property taxes-factory		18,410
Property taxes-headquarters building		38,140
Rent expense-factory		31,120
Sales		3,099,130
Sales salaries expense		380,490
Supplies-factory		15,340
Miscellaneous costs-factory		9,640

Required:

1. Prepare the statement of 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
%24

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
%24
%24

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