Chapter 18, Problem P18.36BPGB

To determine

Cost of Goods Sold:

The accumulated cost incurred in the production or purchase of the goods which are sold by a business organization is called cost of goods sold.

To determine:

1.

Define the three business types: service, merchandising, and manufacturing.

2.

Determine the type of business based on the data given for the two companies.

3.

Compute the cost of goods sold for each company.