Question

Shanika Company Income Statement For the Year Ended December 31, 2046 Sales Cost of good sold: Finished goods inventory, January 1, 2046 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 31, 2046 Cost of goods sold Gross profit Operating expenses: Administrative expenses: Office salaries expense Depreciation expense-office equipment Property taxes-headquarters building Selling expenses: Advertising expense Sales salaries expense Total operating expenses Net income

Answer 1

550600 SHANIKA COMPANY STATEMENT OF COST OF GOODS MANUFACTURED FOR THE YEAR ENDED DECEMBER 31, 2016 Work in process inventory, January1, 2016 Direct materials Material inventory, January1, 2046 (A) 305890 Purchases (B) 577360 Cost of material available for use (A+B) 883250 Less: Material inventory, December31, 2046 382360 Cost of Direct material used in production 500890 Direct Labor 588830 Factory overheads: Indirect labor 68820 Depreciation expenses - factory equipment 49320 Heat, light&power - factory 19500 Property tax-Factory 16060 Rent expenses - factory 27150 Supplies Factory 13380 Miscellaneous cost - Factory 8410 Total Factory over heads 202640 Total manufacturing cost incurred in, 2016 Total manufacturing cost Less: Work in process inventory December31,2016 Cost of goods manufactured 1292360 1842960 5200101 1322950

27032901 529190 1322950 1852140 531480 SHANIKA COMPANY Income Statement FOR THE YEAR ENDED DECEMBER 31, 2046 Sales Cost of goods sold: Finished goods inventory, January 1, 2016 Cost of goods manufactured Cost of finished goods available Less: Finished goods inventory, December31,2016 Cost of goods sold Gross profit Operating expenses: Administrative expenses: Office salary Expenses 201500 Depreciation expenses - office equipment 36710 Property taxes- head quarters building 33270 Selling expenses: Advertisement expenses 259620 Sales salaries expenses 331890 Total Operating Expenses Net Income 1320660 1382630 271480 591510 862990 519640