Answer:
<h2>Shanika Company </h2>
Statement of Cost of Goods Manufactured For the Year Ended December 31, 20Y6:
Materials:
Beginning Inventory $457,760
Purchases 850,190
Cost of materials available $1,307,950
Less Ending Inventory 563,040
Cost of materials used $744,910
Beginning Work in process 823,970
Direct Labor 867,080
Factory Overhead 298,430
Less Ending Work in process (765,730)
Cost of goods manufactured $1,968,660
Explanation:
1) Data and Calculations:
a) Shanika Company for 20Y6:
Inventories January 1 December 31
Materials $457,760 $563,040
Work in process 823,970 765,730
Finished goods 791,920 782,630
Advertising expense $382,300
Depreciation expense-office equipment 54,050
Depreciation expense-factory equipment 72,630
Direct labor 867,080
Heat, light, and power-factory 28,720
Indirect labor 101,350
Materials purchased 850,190
Office salaries expense 296,720
Property taxes-factory 23,650
Property taxes-headquarters building 48,980
Rent expense-factory 39,980
Sales 3,980,690
Sales salaries expense 488,720
Supplies-factory 19,710
Miscellaneous costs-factory 12,390
b) Factory Overhead:
Depreciation expense $72,630
Heat, light, and power 28,720
Indirect labor 101,350
Property taxes-factory 23,650
Rent expense-factory 39,980
Supplies-factory 19,710
Miscellaneous costs 12,390
Total Factory overhead $298,430
c) The cost of goods manufactured is made up of the costs of materials, direct labor, work in process, and manufacturing overhead.
