costs$463,710Less work in process inventory, December 31, 2016 96,200Cost of goods manufactured $367,510Feedback1. The cost of goods manufactured is the beginning work in process plus the cost of direct materials used in production plus direct labor and factory overhead, less the ending work in process.Learning Objective 2, Learning Objective 3.2. Prepare the 2016 income statement.Shanika CompanyIncome StatementFor the Year Ended December 31, 2016Sales $864,500Cost of good sold:Finished goodsinventory, January 1, 2016 $113,750Cost of goods manufactured 367,510Cost of finished goods available for sale $481,260Less finished goods inventory, December 31, 2016 100,100Cost of goods sold 381,160Gross profit $483,34
0Operating expenses:Administrative expenses:Office salaries expense $77,350Depreciation expense-office equipment 22,750Property taxes-headquarters building 13,650$113,750Selling expenses:Advertising expense $68,250Sales salaries expense 136,500204,750Total operating expenses318,500Net income $164,840The direct labor costs related to factory workers and manufacturing costs related to machine, rent, depreciation costs are added to:a.Work in process accountb.Finished goods accountc.Cost of goods sold accountd.All of these choices are correct.2. When the completed goods are moved out of the factory, they go to _______
You've reached the end of your free preview.
Want to read all 6 pages?
- Fall '16
- Salary, Goods Manufactured