Cost of goods manufactured: Cost of goods manufactured refers to the cost incurred for a making a product, that are available for sales at the end of the accounting period. Income statement : The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement. To Prepare: The statement of cost of goods manufactured.

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Chapter 16, Problem 16.5BPR

(a)

To determine

Cost of goods manufactured:

Cost of goods manufactured refers to the cost incurred for a making a product, that are available for sales at the end of the accounting period.

Income statement:

The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement.

To Prepare: The statement of cost of goods manufactured.

(b)

To determine

To Prepare: The income statement.

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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 $183,050 $226,980 Work in process 329,490 308,690 Finished goods 316,680 315,500 Advertising expense $154,120 Depreciation expense-office equipment 21,790 Depreciation expense-factory equipment 29,280 Direct labor 349,550 Heat, light, and power-factory 11,580 Indirect labor 40,860 Materials purchased 342,740 Office salaries expense 119,620 Property taxes-factory 9,530 Property taxes-headquarters building 19,750 Rent expense-factory 16,120 Sales 1,604,750 Sales salaries expense 197,020 Supplies-factory 7,940 Miscellaneous costs-factory 4,990

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