ginning inventory Merchandise Finished goods st of purchases st of goods manufactured ding inventory Merchandise Finished goods $ 275,000 $450 500,000 900 115,000 375 pute cost of goods sold for each of these two companies for omplete this question by entering your answers in Merch Business Mfg Business mpute cost of goods sold for the company year ended De UNIMART Partial Income Statement For Year Ended December 31, 2017 t of goods sold: Goods available for sale "ot a0ede seld
ginning inventory Merchandise Finished goods st of purchases st of goods manufactured ding inventory Merchandise Finished goods $ 275,000 $450 500,000 900 115,000 375 pute cost of goods sold for each of these two companies for omplete this question by entering your answers in Merch Business Mfg Business mpute cost of goods sold for the company year ended De UNIMART Partial Income Statement For Year Ended December 31, 2017 t of goods sold: Goods available for sale "ot a0ede seld
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 4- Part 1
![### Cost of Goods Sold Calculation for Unimart and Precision Manufacturing
**Given Data:**
| | Unimart | Precision Manufacturing |
|-----------------------------------------|-------------|-------------------------|
| **Beginning inventory**: | | |
| - Merchandise | $275,000 | |
| - Finished goods | | $450,000 |
| **Cost of purchases**: | $500,000 | |
| **Cost of goods manufactured**: | | $900,000 |
| **Ending inventory**: | | |
| - Merchandise | $115,000 | |
| - Finished goods | | $375,000 |
**Instructions:**
1. Compute the cost of goods sold for each of these two companies for the year-ended December 31, 2017.
**Steps to Compute Cost of Goods Sold (COGS):**
- **Unimart (Merchandising Business)**
\[
\text{Beginning Inventory (Merchandise)} + \text{Cost of Purchases} - \text{Ending Inventory (Merchandise)} = \text{Cost of Goods Sold}
\]
1. Beginning Inventory: $275,000
2. Cost of Purchases: $500,000
3. Ending Inventory: $115,000
\[
\text{COGS for Unimart} = \$275,000 + \$500,000 - \$115,000
\]
- **Precision Manufacturing (Manufacturing Business)**
\[
\text{Beginning Inventory (Finished Goods)} + \text{Cost of Goods Manufactured} - \text{Ending Inventory (Finished Goods)} = \text{Cost of Goods Sold}
\]
1. Beginning Inventory: $450,000
2. Cost of Goods Manufactured: $900,000
3. Ending Inventory: $375,000
\[
\text{COGS for Precision Manufacturing} = \$450,000 + \$900,000 - \$375,000
\]
---
**Template for Entering Answers:**
**Tab 1: Merch Business**
UNIMART
Partial Income Statement
For Year Ended December 31, 2017
Cost of goods sold:
Beginning inventory $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F893ee43e-f2e9-4f8c-aac0-24f66909628c%2Fdcb1f150-e390-4052-81b0-b959a7cca7c1%2Fnbmhjtw_processed.png&w=3840&q=75)
Transcribed Image Text:### Cost of Goods Sold Calculation for Unimart and Precision Manufacturing
**Given Data:**
| | Unimart | Precision Manufacturing |
|-----------------------------------------|-------------|-------------------------|
| **Beginning inventory**: | | |
| - Merchandise | $275,000 | |
| - Finished goods | | $450,000 |
| **Cost of purchases**: | $500,000 | |
| **Cost of goods manufactured**: | | $900,000 |
| **Ending inventory**: | | |
| - Merchandise | $115,000 | |
| - Finished goods | | $375,000 |
**Instructions:**
1. Compute the cost of goods sold for each of these two companies for the year-ended December 31, 2017.
**Steps to Compute Cost of Goods Sold (COGS):**
- **Unimart (Merchandising Business)**
\[
\text{Beginning Inventory (Merchandise)} + \text{Cost of Purchases} - \text{Ending Inventory (Merchandise)} = \text{Cost of Goods Sold}
\]
1. Beginning Inventory: $275,000
2. Cost of Purchases: $500,000
3. Ending Inventory: $115,000
\[
\text{COGS for Unimart} = \$275,000 + \$500,000 - \$115,000
\]
- **Precision Manufacturing (Manufacturing Business)**
\[
\text{Beginning Inventory (Finished Goods)} + \text{Cost of Goods Manufactured} - \text{Ending Inventory (Finished Goods)} = \text{Cost of Goods Sold}
\]
1. Beginning Inventory: $450,000
2. Cost of Goods Manufactured: $900,000
3. Ending Inventory: $375,000
\[
\text{COGS for Precision Manufacturing} = \$450,000 + \$900,000 - \$375,000
\]
---
**Template for Entering Answers:**
**Tab 1: Merch Business**
UNIMART
Partial Income Statement
For Year Ended December 31, 2017
Cost of goods sold:
Beginning inventory $
![### Computing Cost of Goods Sold for Different Businesses
To comprehend how to compute the cost of goods sold (COGS) for different types of businesses, we'll examine the data provided for two companies, Unimart and Precision Manufacturing, for the year ending December 31, 2017.
#### Initial Data
##### Unimart:
- **Beginning Inventory**:
- Merchandise: $275,000
- **Cost of Purchases**: $500,000
- **Ending Inventory**:
- Merchandise: $115,000
##### Precision Manufacturing:
- **Beginning Inventory**:
- Finished Goods: $450,000
- **Cost of Goods Manufactured**: $900,000
- **Ending Inventory**:
- Finished Goods: $375,000
#### Computation of Cost of Goods Sold
To compute COGS for each company, follow the formula:
\[ \text{COGS} = \text{Beginning Inventory} + \text{Cost of Purchases or Goods Manufactured} - \text{Ending Inventory} \]
### Unimart (Merchandise Business)
We will use the beginning and ending inventories for merchandise and the cost of purchases.
\[ \text{COGS}_{\text{Unimart}} = \$275,000 (\text{Beginning Inventory}) + \$500,000 (\text{Cost of Purchases}) - \$115,000 (\text{Ending Inventory}) \]
Tabulated Computation:
\[
\begin{array}{|l|r|}
\hline
\text{Beginning Inventory:} & \$275,000 \\
\text{Cost of Purchases:} & \$500,000 \\
\hline
\text{Goods Available for Sale:} & \$775,000 \\
\hline
\text{Ending Inventory:} & -\$115,000 \\
\hline
\text{Cost of Goods Sold:} & \$660,000 \\
\hline
\end{array}
\]
### Precision Manufacturing (Manufacturing Business)
We will use the beginning and ending inventories for finished goods and the cost of goods manufactured.
\[ \text{COGS}_{\text{Precision Mfg}} = \$450,000 (\text{Beginning Inventory}) + \$900,000 (\text{Cost of Goods Manufactured}) - \$375,000 (\text{Ending Inventory}) \]
Complete the partial income statement to find the computed](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F893ee43e-f2e9-4f8c-aac0-24f66909628c%2Fdcb1f150-e390-4052-81b0-b959a7cca7c1%2Fp093afp_processed.png&w=3840&q=75)
Transcribed Image Text:### Computing Cost of Goods Sold for Different Businesses
To comprehend how to compute the cost of goods sold (COGS) for different types of businesses, we'll examine the data provided for two companies, Unimart and Precision Manufacturing, for the year ending December 31, 2017.
#### Initial Data
##### Unimart:
- **Beginning Inventory**:
- Merchandise: $275,000
- **Cost of Purchases**: $500,000
- **Ending Inventory**:
- Merchandise: $115,000
##### Precision Manufacturing:
- **Beginning Inventory**:
- Finished Goods: $450,000
- **Cost of Goods Manufactured**: $900,000
- **Ending Inventory**:
- Finished Goods: $375,000
#### Computation of Cost of Goods Sold
To compute COGS for each company, follow the formula:
\[ \text{COGS} = \text{Beginning Inventory} + \text{Cost of Purchases or Goods Manufactured} - \text{Ending Inventory} \]
### Unimart (Merchandise Business)
We will use the beginning and ending inventories for merchandise and the cost of purchases.
\[ \text{COGS}_{\text{Unimart}} = \$275,000 (\text{Beginning Inventory}) + \$500,000 (\text{Cost of Purchases}) - \$115,000 (\text{Ending Inventory}) \]
Tabulated Computation:
\[
\begin{array}{|l|r|}
\hline
\text{Beginning Inventory:} & \$275,000 \\
\text{Cost of Purchases:} & \$500,000 \\
\hline
\text{Goods Available for Sale:} & \$775,000 \\
\hline
\text{Ending Inventory:} & -\$115,000 \\
\hline
\text{Cost of Goods Sold:} & \$660,000 \\
\hline
\end{array}
\]
### Precision Manufacturing (Manufacturing Business)
We will use the beginning and ending inventories for finished goods and the cost of goods manufactured.
\[ \text{COGS}_{\text{Precision Mfg}} = \$450,000 (\text{Beginning Inventory}) + \$900,000 (\text{Cost of Goods Manufactured}) - \$375,000 (\text{Ending Inventory}) \]
Complete the partial income statement to find the computed
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