E10-7 Cost flow relationships The following information is available for the first month of operations of Makin' It Inc., a manufacturer of arts and craft items: Sales Gross profit Indirect labor Indirect materials Other factory overhead Materials purchased Total manufacturing costs for the period Materials inventory, end of period $375,000 120,000 30,000 15,000 5,000 200,000 300,000 25,000 Using the above information, determine the following: a. Cost of goods sold b. Direct materials cost c. Direct labor cost