PART IV Analyze, from the following chart: 1. Are the direct labor and direct materials involve in the manufacturing costing calculation process? 2. Payroll is direct labor? 3. The COGS includes the manufacturing overheat? 4. The company needs to record the finish goods inventory in the Income Statement or in the General Balance? 1 Work-in-Process Inventory (A) Invoices and receiving reports Direct materials Preparation Baking Packaging Finished goods Inventory (warchouse) (B) Payroll Direct labor (L) (C)(DE) Various sources Factory overhead (includes indirect (1) materials and indirect labor) Cost of Goods Sold (delivered) (M) Figure 1 Process Cost System Cost Flows