s 152 $10.286 13,000 Mesa Designs Statement of Cost of Goods Sold For the Year Ended December 31 (5000) Work in process, Jan. 1. Manufacturing costs: Direct materials: Beginning inventory, Jan. 1. $ 96 Add materials purchases... 10,300 Direct materials available. $10,396 Less ending inventory, Dec. 31. 110 Direct materials used Direct labor Manufacturing overhead: Depreciation (factory)..... $5,560 Depreciation (machines) 9,240 Indirect labor (factory) 3,340 Indirect materials (factory). 960 Property taxes on factory 370 Utilities (factory) 1,060 Total manufacturing overhead Total manufacturing costs Total cost of work in process during the year. Less work in process, Dec. 31. Costs of goods manufactured during the year. Beginning finished goods, Jan. 1... Finished goods inventory available for sale Less ending finished goods inventory, Dec. 31. Cost of goods sold... 20.530 43.816 $43,968 136 $43,832 1,974 $45,806 2,026 $43.780 Instructions: Based on the information above, thoroughly explain this report to a cost accounting intern who is going to help prepare this statement in the upcoming months. Considerations: While writing, consider why is it important to find the cost of Good Manufactured before finding the Cost of Goods Sold. Also explain the importance of the Cost of Goods Sold number and what financial statement will show this figure