(Solution) The following information is available for Shanika Company for 20Y6

The following information is available for Shanika Company for 20Y6:

Inventories	1-Jan	31-Dec
Materials	$374,190	$471,480
Work in process	673,540	641,210
Finished goods	647,350	655,360
Advertising expense	$320,130
Depreciation expense-office equipment	45,260
Depreciation expense-factory equipment	60,820
Direct labor	726,080
Heat, light, and power-factory	24,050
Indirect labor	84,870
Materials purchased	711,930
Office salaries expense	248,470
Property taxes-factory	19,800
Property taxes-headquarters building	41,020
Rent expense-factory	33,480
Sales	3,333,360
Sales salaries expense	409,240
Supplies-factory	16,500
Miscellaneous costs-factory	10,370

Required:

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

2. Prepare the 20Y6 income statement.

Solution

In the attached excel solution we solve the questions using formula. It is easy to follow and can be adopted to any set of numbers. All you need is to put in the numbers provided in your question.

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