Question 3 Hot yet answered Marked out of 1.00 Flag question Differentiate between the income statements of a manufacturing company and a merchandising company. Select one: The statement of financial position of a manufacturing company shows work in process inventory and finished goods inventory, whereas the statement of financial position of merchandising company shows merchandise inventory as its ending inventory. The income statement of a manufacturing company uses the cost of goods manufactured account in determining cost of goods sold, whereas the income statement of a merchandising company uses the purchases account in determining cost of goods. All the above statements are incorrect. The income statement of a manufacturing company uses the purchases account in determining cost of goods sold, whereas the income statement of a merchandising company uses the cost of goods manufactured account in determining cost of goods. All of the following items are product costs, except: Select one: Factory insurance Salary of human resources department supervisor Indirect materials O Depreciation of processing machine