Question

The following information is available for Shanika Company for 20Y6: Inventories January 1 December 31 Materials Work in process 642,350 Finished goods617,370 $356,860 $435,370 592,100 605,160 Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment Direct labor Heat, light, and power-factory $295,620 41,800 56,160 670,470 22,200 78,370 657,410 229,440 18,290 37,880 30,910 3,078,070 377,900 15,240 < ) Indirect labor Materials purchased Office salaries expense Property taxes-factory Property taxes-headquarters building Rent expense-factory Sales Sales salaries expense Supplies-factory Miscellaneous costs-factory Required: 1. Prepare the 20Y6 statement of cost of goods manufactured. 9,580 Shanika Company Statement of Cost of Goods Manufactured For the Year Ended December 31, 20Y6 Work in process inventory, January 1, 20Y6

Answer 1

Answer:

1).
Shanika Company
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 20Y6
	Amount($)	Amount($)	Amount($)
Work in process inventory, January 1, 20Y6			6,42,350
Direct materials:
Materials inventory, January 1, 20Y6	3,56,860
Purchases	6,57,410
Cost of materials available for use	10,14,270
Materials inventory, December 31, 20Y6	4,35,370
Cost of direct materials used in production		5,78,900
Direct labor		6,70,470
Factory overhead:
Indirect labor	78,370
Depreciation expense-factory equipment	56,160
Heat, light, and power-factory	22,200
Property taxes-factory	18,290
Rent expense-factory	30,910
Supplies-factory	15,240
Miscellaneous costs-factory	9,580
Total factory overhead		2,30,750
Total manufacturing costs incurred in 20Y6			14,80,120
Total manufacturing costs			21,22,470
Work in process inventory, December 31, 20Y6			5,92,100
Cost of goods manufactured			15,30,370

2).
Shanika Company
Income Statement
For the Year Ended December 31, 20Y6
	Amount($)	Amount($)	Amount($)
Sales			30,78,070
Cost of goods sold:
Finished goods inventory, January 1, 20Y6		6,17,370
Cost of goods manufactured		15,30,370
Cost of finished goods available for sale		21,47,740
Finished goods inventory, December 31, 20Y6		6,05,160
Cost of goods sold			15,42,580
Gross profit			15,35,490
Operating expenses:
Administrative expenses:
Office salaries expense	2,29,440
Depreciation expense-office equipment	41,800
Property taxes-headquarters building	37,880	3,09,120
Selling expenses:
Advertising expense	2,95,620
Sales salaries expense	3,77,900	6,73,520
Total operating expenses			9,82,640
Net income			5,52,850