The following information is available for The NewQuest Corporation for 2016:

Inventories	January 1	December 31
Materials	$347,000	$435,000
Work in process	627,000	590,600
Finished goods	608,200	571,000

	December 31
Advertising expense	$ 295,200
Depreciation expense-office equipment	44,400
Depreciation expense-factory equipment	55,000
Direct labor	669,600
Heat, light, and power-factory	22,480
Indirect labor	76,750
Materials purchased	658,600
Office salaries expense	185,300
Property taxes-factory	18,200
Property taxes-office building	32,400
Rent expense-factory	32,500
Sales	3,016,000
Sales salaries expense	419,000
Supplies-factory	15,900
Miscellaneous costs-factory	9,600

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
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

A. Prepare the 2016 statement of cost of goods manufactured. 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.

The NewQuest Corporation

Statement of Cost of Goods Manufactured

For the Year Ended December 31, 2016

1
2	Direct materials:
3
4
5
6
7
8
9	Factory overhead:
10
11
12
13
14
15
16
17	Total factory overhead
18
19	Total manufacturing costs
20
21

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.

The NewQuest Corporation

Income Statement

For the Year Ended December 31, 2016

1
2	Cost of goods sold:
3
4
5
6
7
8
9	Operating expenses:
10	Administrative expenses:
11
12
13
14	Selling expenses:
15
16
17
18