Prepare the cost of goods sold section of the income statement for each company.Complete this question by entering your answers in the tabs below.Merchandising ManufacturingBusiness BusinessPrepare the cost of goods sold section of the income statement for the Merchandising Business.Cost of Goods Sold for the YearCost of goods soldGoods available for saleCost of goods sold Shown here are annual financial data for a merchandising company and a manufacturing company.Music WorldRetailWave-BoardManufacturingBeginning inventoryMerchandiseFinished goodsCost of merchandise purchasedCost of goods manufacturedEnding inventoryMerchandiseFinished goods$ 200,000300,000175,000$ 500,000875,000225,000Required:Prepare the cost of goods sold section of the income statement for each company.

Goods available for sale = Cost of purchases + Beginning inventory

Shown here are annual financial data for a merchandising company and a manufacturing company. Music World Retail Wave-Board Manufacturing Beginning inventory Merchandise Finished goods Cost of merchandise purchased Cost of goods manufactured Ending inventory Merchandise Finished goods $ 200,000 300,000 175,000 $ 500,000 875,000 225,000 Required: Prepare the cost of goods sold section of the income statement for each company.

Shown here are annual financial data for a merchandising company and a manufacturing company. Music World Retail Wave-Board Manufacturing Beginning inventory Merchandise Finished goods Cost of merchandise purchased Cost of goods manufactured Ending inventory Merchandise Finished goods $ 200,000 300,000 175,000 $ 500,000 875,000 225,000 Required: Prepare the cost of goods sold section of the income statement for each company.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 5PA: Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to...

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