Explain.

Dave's Lighting Inc. produces lamps for the construction industry. During the year, the company incurred the following costs: Factory Rent Direct labor used Factory utilities Direct materials purchases Indirect materials Indirect labor $ 80,000 425,000 50,000 600,000 150,000 90,000 Inventories for the year were: January December 1 31 Direct materials $100,000 $ 75,000 Work in process 20,000 10,000 Finished goods 250,000 215,000 Required: Prepare a statement of cost of goods manufactured and a statement of cost of goods sold