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Complete this question by entering your answers in the tabs below. Merch Business Mfg Business Prepare the cost of goods soldCost of goods manufactured Finished goods inventory, December 31, 2016 Finished goods inventory, December 31, 2017 MerchandisMerchandise purchasesAdd: Finished goods inventory, December 31, 2017 Add: Merchandise inventory, December 31, 2017 Less: Finished goods inventoryRequired: 1. Prepare the cost of goods sold section of the income statement at December 31, 2017, for each company in MerchanCost of goods manufactured Finished goods inventory, December 31, 2016 Finished goods inventory, December 31, 2017 MerchandisMerchandise purchasesAdd: Cost of goods manufactured Add: Merchandise purchases Less: Cost of goods manufactured Less: Merchandise purchasesAdd: Finished goods inventory, December 31, 2017 Add: Merchandise inventory, December 31, 2017 Less: Finished goods inventory

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Answer #1

Music World Retail

Partial income statement

For the year ended December 31, 2017

Cost of goods sold :
Merchandise inventory, December 31, 2016 215,000
Cost of Purchases 340,000
Goods available for sale 555,000
Merchandise inventory, December 31, 2017 -200,000
Cost of goods sold $355,000

Wave - Board MFG.

Partial income statement

For the year ended December 31, 2017

Cost of goods sold :
Finished goods inventory, December 31, 2016 350,000
Cost of goods manufactured 592,000
Goods available for sale 942,000
Finished goods inventory, December 31, 2017 -190,000
Cost of goods sold $752,000

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