Question

The amounts with the red X beside it is incorrect please correct the amounts

Statement of Cast of Goods Manufactured and Income Statement for a Manufacturing Company The following information is available for Shanika Company for 2016: Inventories Materials Work in process Finished goods January 1 December 31 $391,430 $485,370 704,570 660,100 677,170 674,660 Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment Direct labor Heat, light, and power-factory Indirect labor Materials purchased Office salaries expense Property taxes-factory Property taxes-headquarters building Rent expense-factory Sales $329,570 46,600 62,610 747,470 24,750 87,370 732,910 255,790 20,390 42.230 34,460 3,431,570 421,300 16.990 10.680 Sales salaries expense Supplies-factory Miscellaneous costs-factory

Answer 1

Shanika Company
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 20Y6
Work in process inventory, January 1, 20Y6			704570
Direct materials:
Materials inventory, January 1, 20Y6	391430
Add: Purchases	732910
Cost of materials available for use	1124340
less: Materials inventory, December 31, 20Y6	485370
Cost of direct materials used in production (a)		638970
Direct labor (b)		747470
Less: Factory overhead:
Indirect labor	87370
Depreciation expense-factory equipment	62610
Heat, light, and power-factory	24750
Property taxes-factory	20390
Rent expense-factory	34460
Supplies-factory	16990
Miscellaneous costs-factory	10680
Total factory overhead ©		257250
Total manufacturing costs incurred in 20Y6 9 (d= (a+b+c))			1643690
Total manufacturing costs			2348260
Work in process inventory, December 31, 20Y6			660100
Cost of goods manufactured			1688160
2
Shanika Company
Income Statement
For the Year Ended December 31, 20Y6
Sales			3431570
Cost of goods sold:
Finished goods inventory, January 1, 20Y6		677170
Add: Cost of goods manufactured		1688160
Cost of finished goods available for sale		2365330
Less: Finished goods inventory, December 31, 20Y6		674660
Cost of goods sold			1690670
Gross profit			1740900
Less; Operating expenses:
Administrative expenses:		344620
Office salaries expense	255790
Depreciation expense-office equipment	46600
Property taxes-headquarters building	42230
Selling expenses:		750870
Advertising expense	329570
Sales salaries expense	421300
Total operating expenses			1095490
Net income			645410