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Question Two Allocated Mark (7) The Howell corporation has the following account balances (in millions): Direct materials, $15 Depreciation-plant building $80 Jan. 1,2020 and equipment $10 Work in process, Jan. 1 2020 Plant supervisory salaries $5 Finished goods, Jan. 1 2020 $70 $35 Miscellaneous plant overhead $20 Revenues (sales) $950 Direct materials, Dec. 31, 2020 $5 Work in process, Dec. 31, 2020 Marketing, distribution, and $240 customer-service costs $55 Plant supplies used $10 Finished goods, Dec. 31, 2020 $325 Plant utilities $30 Purchase of direct materials $100 Direct manufacturing labor Indirect manufacturing labor $60 Required 1-prepare an income statement and a supporting schedule of cost of goods manufactured for the year ended December 31, 2020. Explain the meaning of cost of goods manufactured. (5 marks] 2- Explain why the Beginning Work in Process (BWIP) is added to the total manufacturing cost to find the cost of goods manufactured? [2 marks]