The following information is available for The NewQuest Corporation for 2016:
Inventories January 1 December 31 Materials $351,000 $436,800 Work in process 631,800 592,800 Finished goods 608,400 576,000 December 31 Advertising expense $ 296,400 Depreciation expense-office equipment 42,120 Depreciation expense-factory equipment 56,160 Direct labor 670,800 Heat, light, and power-factory 22,460 Indirect labor 78,750 Materials purchased 659,800 Office salaries expense 185,000 Property taxes-factory 18,500 Property taxes-office building 32,400 Rent expense-factory 32,000 Sales 3,010,000 Sales salaries expense 420,000 Supplies-factory 15,400 Miscellaneous costs-factory 9,500.
Required:
A. Prepare the 2016 statement of cost of goods manufactured.*
B. Prepare the 2016 income statement.*
* Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Less" or "Plus" will automatically appear if it is required. Enter all amounts as positive numbers. Amount Descriptions Amount Descriptions Advertising expense Cost of direct materials used Cost of finished goods available for sale Cost of goods manufactured Cost of goods sold Cost of materials available for use Depreciation expense-factory equipment Depreciation expense-office equipment Direct labor Finished goods inventory, December 31, 2016 Finished goods inventory, January 1, 2016 Gross profit Heat, light, and power-factory Indirect labor Materials inventory, December 31, 2016 Materials inventory, January 1, 2016 Miscellaneous cost-factory Net income Office salaries expense Property taxes-factory Property taxes-office building Purchases Rent expense-factory Sales Sales salaries expense Supplies-factory Total manufacturing costs incurred Total operating expenses Work in process inventory, December 31, 2016 Work in process inventory, January 1, 2016