Question

Shown here are annual financial data at December 31, 2017, taken from two different companies.
  

	Music World Retail			Wave-Board Manufacturing
Beginning inventory
Merchandise	$	185,000
Finished goods				$	350,000
Cost of purchases		210,000
Cost of goods manufactured					591,000
Ending inventory
Merchandise		160,000
Finished goods					270,000	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 Mfa Business Business Prepare the cost of goods sold section of the income statement at December 31, 2017, for company in Merchandising Business MUSIC WORLD RETAIL Partial Income Statement For Year Ended December 31, 2017 Cost of goods sold: Goods available for sale Cost of goods sold

Answer 1

MUSIC WORLD RETAIL
Partial Income Statement
For Year Ended December 31, 2017
Cost of goods sold:
Merchandise inventory, December 31, 2016          [Beginning inventory]	$185,000
Add: Merchandise purchases	$210,000
Goods available for sale	$395,000
Less: Merchandise inventory, December 31, 2017 [Ending inventory]	$160,000
Cost of goods sold	$235,000

.

.

WAVE-BOARD MANUFACTURING
Partial Income Statement
For Year Ended December 31, 2017
Cost of goods sold:
Finished goods inventory, December 31, 2016       [Beginning inventory]	$350,000
Add: Cost of goods manufactured	$591,000
Goods available for sale	$941,000
Less: Finished goods inventory, December 31, 2017     [Ending inventory]	$270,000
Cost of goods sold	$671,000