Question

Below are data for two companies: BE: (Click the icon to view the data.) Data Table Read the requirements. Requirement 1. Define the three business types: service, merchandising, and manufac Company A Company B Business type Definition Does not sell products. They sell time, skills, and knowledge. Service Beginning balances: Merchandise Inventory Finished Goods Inventory $ 11,000 Merchandising Resells products previously bought from suppliers. 15,600 Manufacturing Uses labor, equipment, supplies, and facilities to convert raw material Ending balances: Merchandise Inventory 13,100 Requirement 2. Based on the data given for the two companies, determine the busines Finished Goods Inventory 11,300 Company A is a merchandising company and Company B is a manufacturing comp 153,500 Net Purchases Cost of Goods Manufactured 210,500 Requirement 3. Calculate the cost of goods sold for each company. Begin by calculating the cost of goods sold for Company A. Company A Print Done Cost of Goods Sold

Answer 1

Solution

Company A
Beginning merchandise inventory	$      11,000.00
Add: Purchases	$ 153,500.00
Merchandise inventory available for sale	$ 164,500.00
Less: Ending merchandise inventory	$      13,100.00
Cost of goods sold	$ 151,400.00

.

Company B
Beginning Finished goods inventory	$      15,600.00
Add: Cost of goods manufactured	$ 210,500.00
Merchandise inventory available for sale	$ 226,100.00
Less: Ending Finished goods inventory	$      11,300.00
Cost of goods sold	$ 214,800.00