Question

Shown here are annual financial data at December 31, 2017, taken from two different companies. Music World Retail Wave-Board Manufacturing $165,000 $200,000 Beginning inventory Merchandise Finished goods Cost of purchases Cost of goods manufactured Ending inventory Merchandise Finished goods 350,000 596,000 180,000 270,000 ces Required: 1. Prepare the cost of goods sold section of the income statement at December 31, 2017 for each company in Merchandising Business and Manufacturing Business, Complete this question by entering your answers in the tabs below. Merch Business Mfg Business

Answer 1

Merch Business

Music World Retail

Partial Income Statement

For the year ended 31st December 2017

Cost of goods sold	$
Merchandise purchases	165000
Add:Merchandise purchases	350000
Goods available for sale	515000
Less:Finished Goods inventory (closing)	(180000)
Cost of Goods Sold	335000

Mfg business

Wave-board manufacturing

Partial Income Statement

for year ended 31st December 2017

Cost of Goods Sold	$
Merchandise inventory (opening)	200000
Add:Cost of Goods Manufactured	596000
Cost of Goods available for sale	796000
Less: Merchandise inventory (closing)	(270000)
Cost of Goods Sold	526000

Please note that the data asked for in the table is not changed. But the figures for the respective companies are taken as it is for this computation.