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

Shanika Company Statement of Cost of Goods Manufactured For the Year Ended December 31, 20Y6 Direct materials: Factory overhead Total factory overhead Total manufacturing costs incurred in 20Y6

Solution

Schedule for manufacturing cost beginning raw material 436330 Add Purchase of raw material 810400 Total 1246730 Less Ending Raw material 536690 Raw material used in production 710040 Direct labor 826500 Manufacturing overheads Indirect labor cost 96600 Heat light power factory 27370 Depreciation expense factory 69230 Property taxes factory 22540 Supplies factory 18780 Misc. Cost factory 11810 Rent expense factory 38100 Manufacturing overheads 284430 Total manufacturing cost 1820970 Add Beginning work in progress 785390 2606360 less Ending work in progress 729900 Cost of goods manufactured 1876460 Income statement Sales 3794400 Cost of goods sold Cost of goods manufactured 1876460 Add Beginning finished goods inventory 754850 Cost of goods available for sale 2631310 Less Ending finished goods inventory 746000 Cost of goods sold 1885310 Gross profit 1909090 less Operating expense Administrative expense Depreciation expense office equipment 51520 Office salaries expense 282840 Property taxes headquater building 46690 Total adminstrative expense 381050 Advertising expense 364410 Sales salaries expense 465850 Total selling expense 830260 Total operating expense 1211310 Net income 697780