Shown here are annual financial data at December 31, 2013, taken from two different companies.

Required
1. Compute the cost of goods sold section of the income statement at December 31, 2013, for each company. Include the proper title and format in the solution.
2. Write a half- page memorandum to your instructor
(a) Identifying the inventory accounts
(b) Identifying where each is reported on the income statement and balance sheet for bothcompanies.

Transcribed Image Text:

Nairma (Manufacturing) Retal) Beginning inventory $100.000 Finished goods Cost of purchases $300,000 250,000 Cost of goods manufactured …·… Ending inventory 586.000 50,000 Merchandise Finished goods 200.000