Business type Service 1.DUNG the three business types: service, merchandising, and manufacturing. Definition Does not sell products. They sell time, skills, and knowledge. Merchandising Resells products previously bought from suppliers. Manufacturing Uses labor, equipment, supplies, and facilities to convert raw materials into new finished products Requirement 2. Based on the data given for the two companies, determine the business type of each one. Company A is a merchandisingcompany and Company B is a manufacturing company. Requirement 3. Calculate the cost of goods sold for each company. Begin by calculating the cost of goods sold for Company A Company A Beginning Merchandise Inventory $ 10,800 Data table Purchases 157,000 167,800 (13,500) $ 154,300 Cost of Goods Available for Sale - Ending Merchandise Inventory Cost of Goods Sold Now calculate the cost of goods sold for Company B. Company B Merchandise Inventory, beginning balance Finished Goods Inventory, beginning balance Merchandise Inventory, ending balance Finished Goods Inventory, ending balance Net Purchases Cost of Goods Sold Cost of Goods Manufactured Company A Company B $ 10,800 Print Done 14,800 13.500 12,700 157,000 210.500