Chapter 18, Problem P18.27APGA

Calculating cost of goods sold for merchandising and manufacturing companies
Learning Objective 3
3. Company B: $217,800
Below are data for two companies:

	Company A	Company B
Beginning balances:
Merchandise Inventory	$ 10,600
Finished Goods Inventory		$ 15,000
Ending balances:
Merchandise Inventory	13,100
Finished Goods Inventory		11,700
Net Purchases	154,500
Cost of Goods Manufactured		214,500

Requirements

1. Define the three business types: service, merchandising, and manufacturing.
2. Based on the data given for the two companies, determine the business type of each one.
3. Calculate the cost of goods sold for each company.