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

Question

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

Explanation / Answer

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

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