Chapter 2. Cost Terminology and Cost Behaviors E2-5 (Cost of goods manufactured; cost of goods sold) The cost and inventory data shown in Tables 1 and 2, respectively, are taken from the accounting records of Mason Company for the year just completed. Required: 1. Indicate which of the costs shown in Table 1 are period costs, not product costs. 2. Indicated which of the costs shown in Table 1 are manufacturing overhead costs. 3. Using the skeletal solution forms shown below, prepare a. Mason's schedule of cost of goods manufactured (COGM) for the current year; b. The cost of goods sold (COGS) section of Mason's income statement for the year. Table 1. Costs incurred Direct labor $70,000 Indirect labor 30,000 Purchases of raw materials 118,000 Maintenance, factory equipment 6,000 Insurance, factory equipment 800 Advertising expense 90,000 Rent, factory facilities 20,000 Supplies, factory 4,200 Sales commissions 50,000 Depreciation, factory equipment 19,000 Depreciation, office equipment 3,000 Table 2. Inventories Jan 1 Dec 31 Raw materials $7,000 $15,000 Work in process 10,000 5,000 Finished goods 20,000 35,000