The following information is available for The NewQuest Corporation for 2016: Inventories January 1 December 31 Materials $349,000 $435,600 Work in process 630,200 593,000 Finished goods 606,400 570,000 December 31 Advertising expense $ 294,400 Depreciation expense-office equipment 42,480 Depreciation expense-factory equipment 55,700 Direct labor 668,400 Heat, light, and power-factory 22,240 Indirect labor 76,250 Materials purchased 659,000 Office salaries expense 183,700 Property taxes-factory 17,400 Property taxes-office building 32,200 Rent expense-factory 32,300 Sales 3,008,000 Sales salaries expense 416,000 Supplies-factory 15,200 Miscellaneous costs-factory 10,000 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.