Answer:
Results are below.
Explanation:
Giving the following information:
Company 1:
Beginning inventory Merchandise $253,000
Cost of purchases 600,000
Ending inventory Merchandise 153,000
Company 2:
Beginning Finished goods $506,000
Cost of goods manufactured 930,000
Ending Finished goods 147,000
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured/purchased - ending finished inventory
Company 1:
COGS= 253,000 + 600,000 - 153,000
COGS= $700,000
Company 2:
COGS= 506,000 + 930,000 - 147,000
COGS= $1,289,000
