Question

recision nufacturin Beginning inventory Merchandise Finished goods $275,000 $450,000 Cost of purchases Cost of goods manufactured Ending inventory 500,000 900,000 Merchandise Finished goods 115,000 375,000 Compute cost of goods sold for each of these two companies for the year ended December 31,.2017 Complete this question by entering your answers in the tabs below. Merch Business Mfg Business Compute cost of goods sold for the company year ended December 31, 2017 in Manufacturing Business PRECISION MANUFACTURING Next:> Prev4 of 6

Answer 1

UNIMART
Partial Income Statement
For Year Ended December 31, 2017
Cost of goods sold:
Merchandise inventory, Beginning	$275,000
Add: Merchandise purchases	$500,000
Goods available for sale	$775,000
Less: Merchandise inventory, Ending	($115,000)
Cost of goods sold	$660,000
PRECISION MANUFACTURING
Partial Income Statement
For Year Ended December 31, 2017
Cost of goods sold:
Finished goods inventory, Beginning	$450,000
Add: Cost of goods manufactured	$900,000
Goods available for sale	$1,350,000
Less: Finished goods inventory, Ending	($375,000)
Cost of goods sold	$975,000