QUESTION 2: 20 marks SHOW ALL SUPPORTING CALCULATIONS FOR THIS PROBLEM. NO MARKS WILL BE AWARDED FOR ANSWERS TO THE PROBLEMS UNSUPPORTED BY CLEARLY SHOWN CALCULATIONS. Vivus Company is a specialty pharmaceutical company incorporated in California in 1991 and reincorporated in Delaware in 1996. In April 2018, the company hired John Amos as its new Chief Executive Officer. Under Amos leadership, the company ventured into manufacturing many new product lines, including Albuminex, a prescription medicine used to treat people who cannot digest food normally because their pancreas does not make enough enzymes due to cystic fibrosis or other conditions. At the end of December 2020, the accounting records relating to the Albuminex product line showed the following: Finished goods inventory, December 31, 2019 $15,000 Finished goods inventory, December 31, 2020 $28,000 Work in process inventory, December 31, 2019 $23,000 Work in process inventory, December 31, 2020 $25,000 Raw materials inventory, December 31, 2019 $30,000 Raw materials inventory, December 31, 2020 $15,000 Sales revenue $480,000 Direct Labour $37,000 Factory Supervisory Salaries $24,000 Income Tax Expense $31,000 Factory insurance $14,000 Raw material purchases $74,000 Administrative expenses $27,000 Sales returns and allowances $12,000 Factory depreciation $18,000 Indirect labour $10,000 Selling expenses $39,000 Required: Using the above information for Vivus Company, answer the following questions. Support your answers with clearly identified computations. 1. What was the amount of direct materials used in production? 4 marks 2. What were the total manufacturing costs incurred? 4 marks 3. What was the cost of goods manufactured? 4 marks 4. What was the cost of goods sold? 4 marks 5. What was the amount of net income? 4 marks