The Howell corporation has the following account balances (in millions):

Direct materials, Jan.1,2020	$15	Depreciation- plant building and equipment	$80
Work in process, Jan. 1 2020	$10	Plant supervisory salaries	$5
Finished goods, Jan. 1 2020	$70	Miscellaneous plant overhead	$35
Direct materials, Dec. 31, 2020	$20	Revenues (sales)	$950
Work in process, Dec. 31, 2020	$5	Marketing, distribution, and customer-service costs	$240
Finished goods, Dec. 31, 2020	$55	Plant supplies used	$10
Purchase of direct materials	$325	Plant utilities	$30
Direct manufacturing labor	$100	Indirect manufacturing labor	$60

Required

1-prepare an income statement and a supporting schedule of cost of goods manufactured for the year ended December 31, 2020. Explain the meaning of cost of goods manufactured. [5 marks]

2- Explain why the Beginning Work in Process (BWIP) is added to the total manufacturing cost to find the cost of goods manufactured? [2 Marks]