Question Two Allocated Mark ( 7 ) The Howell corporation has the following account balances (in Millions): Direct materials, $25 Depreciation- plant building $100 Jan.1,2020 and equipment Work in process, Jan. $18 Plant supervisory salaries $8 1 2020 Finished goods, Jan. $90 Miscellaneous plant $45 1 2020 overhead Direct materials, Dec. $30 Revenues (sales) $1200 31, 2020 Work in process, Dec. $15 Marketing, distribution, and $320 31, 2020 customer-service costs Finished goods, Dec. $60 Plant supplies used $15 31, 2020 Purchase of direct $405 Plant utilities $45 materials Direct manufacturing $190 Indirect manufacturing $66 labor labor Required 1-prepare an income statement and a supporting schedule of cost of goods manufactured Page 3 of 8 for the year ended December 31, 2020. Explain the meaning of cost of goods manufactured. [5 marks] 2- Explain why Ending Work in Process (EWIP) is deducted from the total manufacturing cost to find the cost of goods manufactured? [2 marks]