Topic 1: Cost Classification Direction: Read and answer what is required. 1-The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: Costs incurred: Direct labor cost... Purchases of raw materials Manufacturing overhead Advertising expense.... $70,000 $118,000 $80,000 $90,000 Beginning of End of the Year the Year Required: Inventories: Raw materials Work in process. Finished goods... $7,000 $15,000 $10,000 $5,000 $20,000 $35,000 1. Prepare a schedule of cost of goods manufactured. 2. Prepare the cost of goods sold. 3. Prepare Mason Company's income statement for the year.(Sales=$900,000)|