Describe how product costs (raw materials, direct labor and applied manufacturing overhead) flow through the process costing system. In your discussion, please address (1) the specific accounts these costs flow through (2) the financial statement each account would appear on and (3) how each transfer affects the balance sheet and/or income statement (does it increase/decrease assets, liabilities, equity, revenue, expenses, net income) Please number your response. Describe how product costs (raw materials, direct labor and applied manufacturing overhead) flow through the process costing system. In your discussion, please address (1) the specific accounts these costs flow through, (2) the financial statement each account would appear on and (3) how each transfer affects the balance sheet and/or income statement (does it increase/decrease assets, liabilities, equity, revenue, expenses, net income Please number your response