Homework SourseThe following information is available for Shanika Company f
The following information is available for Shanika Company for 20Y6:
Required:
1. Prepare the 20Y6 statement of cost of goods manufactured.
Cost of goods manufactured_________
2.
Prepare the 20Y6 income statement.
| Inventories | January 1 | December 31 | ||
| Materials | $206,620 | $252,080 | ||
| Work in process | 371,920 | 342,830 | ||
| Finished goods | 357,450 | 350,390 |
Solution
1.
2.
| Shanika Company | |||
| Statement of Cost of Goods Manufactured | |||
| For the Year Ended December 31, 20Y6 | |||
| Work in process inventory, January 1, 20Y6 | 371920 | ||
| Direct materials: | |||
| Materials inventory, January 1, 20Y6 | 206620 | ||
| Purchases | 380640 | ||
| Cost of materials available for use | 587260 | ||
| Materials inventory, December 31, 20Y6 | 252080 | ||
| Cost of direct materials used in production | 335180 | ||
| Direct labor | 388200 | ||
| Factory overhead: | |||
| Indirect labor | 45370 | ||
| Depreciation expense-factory equipment | 32520 | ||
| Heat, light, and power-factory | 12860 | ||
| Property taxes-factory | 10590 | ||
| Rent expense-factory | 17900 | ||
| Supplies-factory | 8820 | ||
| Miscellaneous costs-factory | 5550 | ||
| Total factory overhead | 133610 | ||
| Total manufacturing costs incurred in 20Y6 | 856990 | ||
| Total manufacturing costs | 1228910 | ||
| Work in process inventory, December 31, 20Y6 | 342830 | ||
| Cost of goods manufactured | 886080 |
