Question

ework Saved Problem 1-5A Inventory computation and reporting LO C4, P1 Shown here are annual financial data at December 31, 2017, taken from two different companies. Music World Wave-Board Retail Manufacturing Beginning inventory Merchandise $200,000 Finished goods $500,000 Cost of purchases 300,000 Cost of goods manufactured 875,000 Ending inventory Merchandise 175,000 Finished goods 225,000 Required: 1. Prepare the cost of goods sold section of the income statement at December 31, 2017, for each company in Merchandising Busine and Manufacturing Business. Complete this question by entering your answers in the tabs below. Merch Business Mfg 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 Nort

Answer 1

Answer:-

MUSIC WORLD RETAIL
Partial Income Statement
For Year Ended December 31, 2017
Cost of goods sold:
Merchandise inventory, December 31, 2016          [Beginning inventory]	$200,000
Add: Merchandise purchases	$300,000
Goods available for sale	$500000
Less: Merchandise inventory, December 31, 2017 [Ending inventory]	$175000
Cost of goods sold	$325,000

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WAVE-BOARD MANUFACTURING
Partial Income Statement
For Year Ended December 31, 2017
Cost of goods sold:
Finished goods inventory, December 31, 2016       [Beginning inventory]	$500,000
Add: Cost of goods manufactured	$875,000
Goods available for sale	$1375,000
Less: Finished goods inventory, December 31, 2017     [Ending inventory]	$225000
Cost of goods sold	$1150,000