Statement of Cost of Goods Manufactured and Income Statement

Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company

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

Required:

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

Inventories	January 1	December 31
Materials	$436,330		$536,690
Work in process	785,390		729,900
Finished goods	754,850		746,000

1. Prepare the 20Y6 statement of cost of goods manufactured Shanika Company Statement of Cost of Goods Manufactured Direct materials: Factory overhead Total factory overhead Total manufacturing costs incurred in 20Y6 Total manufacturing costs Cost of goods manufactured

Solution

Shanika Company Statement of cost of goods manufactured For the year ended December 31, 20Y6 Begining Work In progess, January 1      785,390 Direct materials : Begining Raw Materials , January 1            436,330 Add: Raw Material Purchases            810,400 Total Raw Materials Available for use          1,246,730 Less: Ending Raw Materials , December 31           -536,690 Raw material used in production               710,040 Direct Labour               826,500 Factorty overhead Depreciation expense- Factory equipment                69,230 Indirect Labour                96,600 Heat light and power factory                27,370 Property Taxes -Factory                22,540 Factory Supplies                18,780 Rent Expense -Factory                38,100 Miscellaneous Cost -Factory                11,810 Total Factory costs               284,430 Total Manfucature costs incurred in 20Y6    1,820,970 Total manufacturing costs    2,606,360 Less :Ending Work In progess, December 31 -729,900 Cost Goods Manufactured    1,876,460 Shanika Company Income Statement For the year ended December 31, 20Y6 Sales    3,794,400 Less: Cost of Goods Sold Cost Goods Manufactured            1,876,460 Add : Begining Finshed Goods, January 1               754,850 Finished Goods Available for Sale            2,631,310 Less: Ending Finshed Goods, December 31             -746,000 Cost of Goods Sold    1,885,310 Gross Income    1,909,090 Operating expenses: Adminstrative Expenses Depreciation expense- office equipment                51,520 Property Taxes -Head Quarters Building                46,690 Office Salaries Expense 282,840               381,050 Selling Expenses: Advertising expenses 364,410 Sales Salaries Expense            465,850               830,260 Total Operating Expenses    1,211,310 Net income 697,780