11:19 PM Sat Jul 13 T50% ACCT 2020 (Notes) ACCT 2020 ACCT 2020 (Notes) year. (Hint: The first step is to calculate the direct materials used during the year.) E2-26A Compute Cost of Goods Manufactured and Cost of Goods Sold (Learning Objective 5) Compute the Cost of Goods Manufactured and Cost of Goods Sold for West Nautical Company for the most recent year using the amounts described next. Assume that the Raw Materials Inventory contains only direct materials. Beginning of Year End of Year End of Year Raw materials inventory $23,000 $25,000 $35,000 $31,000 Insurance on plant. $ 11,500 Work in process inventory Depreciation-plant building and equipment . Finished goods inventory. $13,400 $20,000 $22,000 Repairs and maintenance-plant 3,700 Purchases of direct materials $74,000 Marketing expenses $77,000 Direct labor $86,000 General and administrative expenses. $ 28,500 Indirect labor $42,000 RA WIP COGM ro00 200 230600 2326o0 PL 8 fooD 7hooo 232 600 coGS Om 72000 42000 tt500 22000 3 100

Referring to the question E2-26A in the textbook named Managerial Accounting by Pearson- 5th edition.  

The expenses named “ insurance on plant, depreciation-plant building and equipment and repairs and maintenance-plant “, how can we identify they are not a kind of indirect costs of manufacturing?  For instance, insurance on plant is obvious an expenses because of manufacturing the product.  

Plus, What is the purpose of the question mention- Assume that the RM inventory contains only direct materials? 

Please instruct.  Appreciated