Question

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 $391,430 $485,370 Work in process 704,570 660,100 Finished goods 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 taces-headquarters building Rent expense-factory $329,570 46,600 62,610 747,470 24.750 87.370 732,910 255,790 20,390 42.230 34 460 431.579 421.300 15.990 10.680 Sales salaries expense Super-factory Miscellaneous costs-factory Required:

Answer 1

$704,570 Shanika Company Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2016 Work in process inventory, Beginning Direct materials Raw materials inventory. Beginning $391.430 Add: Raw materials purchases $732,910 Raw materials available for use $1.124.340 Less: Raw materials inventory, Ending $485,370 Direct materials used $638.970 Direct labor cost $747.470 Factory overhead: Depreciation expense-factory equipment $62,610 Heat, light, and power-factory $24.750 Indirect labor $87,370 Property taxes factory $20.390 Rent expense-factory $34,460 Supplies-factory $16.990 Miscellaneous costs-factory $10.680 Total factory overhead $257.250 Total Manufacturing Costs Incurred in 2046 Total manufacturing costs Less: Work in process inventory.Ending Cost of goods manufactured $1,643,690 $2,348,260 $660.100 $1,688,160 Shanika Company Income Statement For the Year Ended December 31, 2046 Sales $3,431,570 $677,170 $1,688.160 $2,365,330 $674,660 $1,690,670 $1.740.900 Cost of goods sold: Finished goods Inventory, Beginning Cost of goods manufactured Cost of goods available for sale Less: Finished goods Inventory, Ending Cost of goods sold Gross Profit Operating expenses: Administrative expenses: Depreciation expense-factory equipment Office salaries expense Property taxes-headquarters building Selling expenses: Advertising expense Sales salries expense Total Operating expenses: Net Income $46.600 $255,790 $42.230 $344.620 $329,570 $421,300 $750.870 $1,095,490 $645,410