Question

1. 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	$317,850		$394,130
   Work in process	572,130		536,020
   Finished goods	549,880		547,840

   Advertising expense	$267,610
   Depreciation expense-office equipment	37,840
   Depreciation expense-factory equipment	50,840
   Direct labor	606,960
   Heat, light, and power-factory	20,100
   Indirect labor	70,940
   Materials purchased	595,140
   Office salaries expense	207,710
   Property taxes-factory	16,550
   Property taxes-headquarters building	34,290
   Rent expense-factory	27,980
   Sales	2,786,500
   Sales salaries expense	342,100
   Supplies-factory	13,790
   Miscellaneous costs-factory	8,670

   Required:

   1. Prepare the 20Y6 statement of cost of goods manufactured.

   Shanika Company
   Statement of Cost of Goods Manufactured
   For the Year Ended December 31, 20Y6
   Depreciation expense-factory equipment Indirect labor Supplies Work in process inventory, January 1, 20Y6			$
   Direct materials:
   Materials inventory, January 1, 20Y6 Rent expense-factory Supplies-factory Work in process inventory, December 31, 20Y6	$
   Indirect labor Property taxes-headquarters building Purchases Work in process inventory, December 31, 20Y6
   Cost of materials available for use Supplies-factory Work in process inventory, January 1, 20Y6 Work in process inventory, December 31, 20Y6	$
   Indirect labor Materials inventory, December 31, 20Y6 Miscellaneous cost-factory Work in process inventory, December 31, 20Y6
   Cost of direct materials used in production Cost of finished goods available for sale Cost of goods manufactured Cost of goods sold		$
   Depreciation expense-factory equipment Direct labor Indirect labor Supplies-factory
   Factory overhead:
   Indirect labor Materials inventory, January 1, 20Y6 Purchases Sales	$
   Depreciation expense-factory equipment Depreciation expense-office equipment Direct labor Purchases
   Direct labor Heat, light, and power-factory Materials inventory, January 1, 20Y6 Work in process inventory, December 31, 20Y6
   Cost of materials available for use Direct labor Property taxes-factory Property taxes-headquarters building
   Purchases Rent expense-factory Rent expense-headquarters building Sales salaries expense
   Cost of goods sold Direct labor Purchases Supplies-factory
   Advertising expense Cost of materials available for use Direct materials Miscellaneous costs-factory
   Total factory overhead
   Total manufacturing costs incurred in 20Y6
   Total manufacturing costs			$
   Cost of materials available for use Direct materials Materials inventory, December 31, 20Y6 Work in process inventory, December 31, 20Y6
   Cost of goods manufactured			$

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   2. Prepare the 20Y6 income statement.

   Shanika Company
   Income Statement
   For the Year Ended December 31, 20Y6
   Cost of goods sold Gross profit Indirect labor Sales			$
   Cost of good sold:
   Advertising expense Finished goods inventory, January 1, 20Y6 Finished goods inventory, December 31, 20Y6 Sales		$
   Cost of direct materials used in production Cost of finished goods available for sale Cost of goods manufactured Cost of goods sold
   Cost of direct materials used in production Cost of finished goods available for sale Cost of goods sold Cost of materials available for use		$
   Depreciation expense-office equipment Finished goods inventory, December 31, 20Y6 Net loss Plus finished goods inventory, December 1, 20Y6
   Cost of direct materials used in production Cost of finished goods available for sale Cost of goods sold Cost of materials available for use
   Cost of goods sold Gross profit Property taxes-headquarters building Sales			$
   Operating expenses:
   Administrative expenses:
   Cost of goods sold Office salaries expense Sales Sales salaries expense	$
   Advertising expense Depreciation expense-factory equipment Depreciation expense-office equipment Gross profit
   Cost of goods sold Property taxes-factory Property taxes-headquarters building Sales		$
   Selling expenses:
   Advertising expense Cost of goods sold Office salaries expense Sales	$
   Direct labor Office salaries expense Sales Sales salaries expense
   Total operating expenses
   Net income Net loss			$

Answer 1