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.