V Cost of goods sold statement. The following information has been taken from the records of Maxwell Company: Inventories: January 1 December 31 Finished goods.. $ 5,000 S 7,000 Work in process. 15.000 9,000 Materials. .... 10,000 12,000 Materials purchases ...... $100,000 Direct labor.... 200,000 Freight in ..... 3,000 Sales salaries and expenses 25,000 Other factory expenses.. 4,000 Freight out...... 2,000 Factory Insurance........... 12,500 Depreciation-machinery ...... 40,000 Purchase returns and allowances. 5,000 Sales ..........** ** 350,000 Purchase discounts ...... 800 Sales discounts ..... 2,000 Required: Prepare a cost of goods sold statement for the year