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 Finished goods inventory, December 31, 2020 Work in process inventory, December 31, 2019 Work in process inventory, December 31, 2020 Raw materials inventory, December 31, 2019 Raw materials inventory, December 31, 2020 Sales revenue Direct Labour Factory Supervisory Salaries Income Tax Expense Factory insurance Raw material purchases Administrative expenses Sales returns and allowances Factory depreciation Indirect labour Selling expenses $17,000 $16,000 $29,000 $25,000 $24,000 $14,000 $510,000 $51,000 $21,000 $33,000 $11,000 $54,000 $22,000 $15,000 $26,000 $16,000 $33,000 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