Question

PR statement for a manufacturing company 15-5B Statement of cost of goods manufactured and income 1. Cost of goods The e following information is available for Shanika Company for 20Y6: inforn manufactured, 5367,510o December 31 Inventories Materials Work in process Finished goods January 1 s 77,350 109,200 113,750 95,550 96,200 SHOW ME HOW EXCEL TEMPLATE 100,100 Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment Direct labor Heat, light, and power-factory Indirect labor 68,250 22,750 14,560 186,550 5,850 23,660 123,500 Materials purchased

Answer 1

1
SHANIKA COMPANY
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 20Y6
Work in process inventory, January 1, 20Y6			109200
Direct materials:
Materials inventory, January 1, 20Y6	77350
Purchases	123500
Cost of materials available for use	200850
Less materials inventory, December 31, 20Y6	95550
Cost of direct materials used in production		105300
Direct labor		186550
Factory overhead:
Indirect labor	23660
Depreciation expense—factory equipment	14560
Heat, light, and power—factory	5850
Property taxes—factory	4095
Rent expense—factory	6825
Supplies—factory	3250
Miscellaneous cost—factory	4420
Total factory overhead		62660
Total manufacturing costs incurred during the year			354510
Total manufacturing costs			463710
Less work in process inventory, December 31, 20Y6			96200
Cost of goods manufactured			367510
2
SHANIKA COMPANY
Income Statement
For the Year Ended December 31, 20Y6
Sales			864500
Cost of goods sold:
Finished goods inventory, January 1, 20Y6		113750
Cost of goods manufactured		367510
Cost of finished goods available for sale		481260
Less finished goods inventory,December 31, 20Y6		100100
Cost of goods sold			381160
Gross profit			483340
Operating expenses:
Administrative expenses:
Office salaries expense	77350
Depreciation expense—office equipment	22750
Property taxes—headquarters building	13650	113750
Selling expenses:
Advertising expense	68250
Sales salaries expense	136500	204750
Total operating expenses			318500
Net income			164840