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 $396,120 $495,150 Work in process 713,020 673,400 Finished goods 685,290 688,260 Advertising expense $336,210 47,530 63,870 762,530 25,250 89,130 747,680 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 Sales salaries expense Supplies-factory 260,940 20,800 43,080 35,160 3,500,710 429,790 17,330

Answer 1

7130201 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, 20Y6 (A) 396120 Purchases (B) 747680 Cost of material available for use (A+B) 1143800 Less: Material inventory, December 31, 2016 495150 Cost of Direct material used in production 648650 Direct Labor 762530 Factory overheads: Indirect labor 89130 Depreciation expenses - factory equipment 638701 Heat,light&power - factory 25250 Property tax - Factory 20800 Rent expenses - factory 35160 Supplies Factory 17330 Miscellaneous cost - Factory 10890 Total Factory over heads 262430 Total manufacturing cost incurred in, 2016 Total manufacturing cost Less: Work in process inventory December31,2016 Cost of goods manufactured 1673610 2386630 673400 1713230

SHANIKA COMPANY Income Statement FOR THE YEAR ENDED DECEMBER 31, 2016 Sales 35007101 685290 1713230 2398520 688260 1710260 1790450 Cost of goods sold: Finished goods inventory, January1,2016 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 Depreciation expenses - office equipment Property taxes- head quarters building Selling expenses: Advertisement expenses Sales salaries expenses Total Operating Expenses Net Income 260940 47530 43080 351550 336210 429790 766000 1117550 672900