Question

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

Inventories	January 1		December 31
Materials	$402,820		$491,440
Work in process	725,080		668,360
Finished goods	696,880		683,100

Advertising expense	$333,690
Depreciation expense-office equipment	47,180
Depreciation expense-factory equipment	63,400
Direct labor	756,820
Heat, light, and power-factory	25,060
Indirect labor	88,460
Materials purchased	742,070
Office salaries expense	258,990
Property taxes-factory	20,640
Property taxes-headquarters building	42,760
Rent expense-factory	34,890
Sales	3,474,480
Sales salaries expense	426,570
Supplies-factory	17,200
Miscellaneous costs-factory	10,810

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

Requirement 1: Shanika Company Statement of Cost of Goods Manufactured For the Year Ended December 31. 20Y6 1mount($) Amount(S) Imount($) Work in process inventory, January 1, 20Y6 Direct materials 725080 402820 742070 1144890 491440 Materials inventory, January 1, 20Y6 Purchases Cost of materials available for use Less: materials inventory, December 31, 20Y6 Cost of direct materials used in production 653450 756820 Direct labor Factory overhead Indirect labor Depreciation expense-factory equipment Heat, light, and power facto Propcrty taxcs-factory Rent expense factory Suppliesfacto Miscellaneous cost-factory 88460 63400 25060 20640 34890 7200 10810 Total factory overhead Total manufacturing costs incurred in 20Y6 Total manufacturing costs Less: work in process inventory, December 31, 20Y6 Cost of goods manufactured 260460 1670730 2395810 668360 1727450 Created by Universal Document Converter