Question 2 (40 points) Shopify company had the following inventory balances at the beginning and end of 2020. Inventory Classification January 1, 2020 December 31, 2020 Work in Process $80,000 $50,000 Finished Goods $130,000 $150,000 Raw Material $120,000 $80,000 During 2020, the company spent $80,000 on direct labor and purchased $30,000 raw material. Manufacturing overhead costs were 65,000. Prepare a schedule of cost of goods manufactured. Question 3 (16 points-4 points each) Consider the following costs that were incurred during the current year and determine whether the cost is a product cost or a period cost. Coa) Advertising costs.erican College of the Middle East, 2020 b) Cost of Material used.. c) CEO's salary.. d) Sales Commissions.. Bonus Question Describe the behavior of variable and fixed costs. (5 points)