a) Explain manufacturing overhead. Why direct materials and direct labor are not included in manufacturing overhead. [2.5] b) a. The following data were taken from the records of Thompson Company for the fiscal year ended June 30, 2020. Direct Labor 371500 Purchase of Direct Materials 161400 Factory Supplies Used 37800 Factory Utilities 46000 Commissions Paid 80000 Factory Supervision and Indirect Labor 190000 2 Advertising 23900 Factory Repairs 26750 Work in Process Inventory, January 1 201000 Work in Process Inventory, December 98000 31 Direct Materials Inventory, January 1 47000 Direct Materials Inventory, December 17000 31 Finished Goods Inventory, January 1 28000 Finished Goods Inventory, December 45200 31 Instructions: i. Prepare a cost of goods manufactured schedule. [5] ii. Prepare a cost of goods sold statement. [5]