(The following information applies to the questions displayed belov Victor Holt, the accounting manager of Sexton, Inc., gathered the following information for year 4. Some of it can be used to construct an income statement for year 4. Ignore items that do not appear on an income statement. Some computation may be required. For exemple, the cost of manufacturing equipment would not appear on the income statement However, the cost of manufacturing equipment is needed to compute the amount of depreciation. All units of product were started and completed in year 4 1. Issued $864,000 of common stock. 2. Paid engineers in the product design department $10,000 for salaries that were accrued at the end of the previous year. 3. Incurred advertising expenses of $70,000. 4. Paid $720,000 for materials used to manufacture the company's product 5. Incurred utility costs of $160,000. These costs were allocated to different departments on the basis of square footage of floor space. Mr. Holt identified three departments and determined the square footage of floor space for cach department to be as shown in the following table. Req A1 Req A2 Req A3 Identify the items that are classified as upstream costs and det income statement. Upstream Costs: Total Req Al Req AZ Req A3 Identify the tems that are classified as downstream costs and determine the a year 4 income statement. Downstream Costs: Total RcQ A Rog 42 Req A3 Identify the items that are classified as product costs and determine the amount of cast of go Income statement. (Do not round intermediate calculations.) Cost of goods sold. Total product cost Cost of goods sold Reg A2 >